Taxation

In 25 of the 27 Member States of the European Union, books benefit from reduced rates of VAT; three countries even provide for a zero VAT rate for books: Ireland, Poland and the United Kingdom. Three more countries have extended reduced rates to books on all physical supports: France, Spain and the Netherlands, while Sweden, Norway and Iceland allow reduced VAT for audio books.

 

FEP has always been pleading for books to be taxed at the lowest rate for the intrinsic educational, cultural and social socials they carry, and is now committed to advocating for equal fiscal treatment for all kinds of books, regardless of their format.

Latest developments:

In July 2008, the Commission adopted a proposal for a Council Directive amending Directive 2006/112/EC as regards reduced rates of VAT. The proposal included a series of technical adaptations to the list of products and services for which reduced rates are allowed; one of these would extend the possible application to “audio books, CD, CD-ROMs or any similar physical support that predominantly reproduce the same information content as printed books”.

The proposal was welcomed favourably by the European Parliament, which on taxation matters only has a consultative role. The reception of the proposal in the Council was much more controversial, as unanimity was needed to reach an agreement and several Member States were opposed in principle to the use of reduced rates of VAT. The economic crisis also influenced the debates on the issue.

Finally, after a political agreement reached by the Council in March 2009, on 5 May 2009 Council Directive 2009/47/EC amending Directive 2006/112/EC as regards reduced rates of value added tax was adopted; it allows, among others, the application of reduced rates to books on all physical means of support. The Directive entered into force on 1 June 2009. France, Spain and the Netherlands have taken advantage of the new provisions to extend the reduced rates to books on all physical supports, while Sweden allows reduced VAT on audio books.

However, differences remain in the fiscal treatment of books with regard to their format (printed or electronic) and means of delivery (online or offline).

FEP campaigned intensively, in close coordination with the European Blind Union, all along the political process that led to the adoption of Council Directive 2009/47/EC amending Directive 2006/112/EC as regards reduced rates of value added tax, which occurred on 5 May 2009.

In 2009, FEP created a Working Group on VAT within its members to coordinate the lobbying strategy with regard to the issue of reduced rates.

In April 2008- Débat d'orientation économique général concernant les taux réduits de TVA

Préparé par la Présidence slovène pour le groupe ‘Questions fiscales’

http://register.consilium.europa.eu/pdf/fr/08/st08/st08371.fr08.pdf

 

In July 2008 – Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards reduced rates of value added tax

Press release IP/08/1109, MEMO/08/481 and the impact assessment SEC/08/2190 and its summary SEC/08/2191

http://ec.europa.eu/prelex/detail_dossier_real.cfm?CL=en&DosId=197211

The European Commission website 

FEP resolutions

VAT in Iceland (2009)

Joint statement with STM on VAT and Education (2009)

VAT in Lithuania (2009)

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