VAT on ebooks: Malta and Italy lower rate

Several European countries have now reduced VAT rate.

Italy is to reduce VAT on e-books from 22% to 4% to match the current rate on printed books.  Malta has also agreed to reduce VAT on e-books to 5% to match that on printed books.

Luxembourg and France have previously reduced VAT on e-books but have both been threatened with prosecution by the European Court of Justice.

A new European-wide VAT law on digital products will be introduced on 1 January 2015. E-books and digital services will be taxed at the VAT rate in which the product is sold.

Source: The Bookseller.