EU considers VAT cuts for online content

The European Commission is considering the idea of lowering Value Added Tax rates for online media.

In most EU countries, printed newspapers enjoy a lower VAT rate than online publications - often at up to half the standard rate.  There is a call to harmonise the levels of taxation on content, irrespective of it format.

These discussions are part of a larger debate in Europe about how, and if, the EU can support the media industry.  The EU commissioner in charge of media issues, Neelie Kroes, is said to be planning to establish a monitoring group to assess breaches of press freedom in all member states.

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