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After having questioned France and Luxembourg about reduced VAT rate on ebooks in 2012 (our newsletter of September 2012), the European Commission decided on February 21st 2013 to refer France and Luxembourg to the European Court of Justice for applying reduced VAT rates to ebooks. The European Commission is of the opinion that the EU law is very clear on which goods and services are eligible for a reduced VAT rate.
The provision of ebooks cannot benefit from a reduced rate
The provision of ebooks is an electronically provided service and as such cannot benefit from a reduced rate. This decision has been taken against the background of a new EU VAT strategy according to which similar goods and services should be subject to VAT at the same rates and taking into account technological progress. Pursuant to such strategy the European Commission is to make proposals on reduced rates by the end of the year.
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