Posted by: bluesyemre | March 25, 2014

January 2015 tax change for e-book downloads

 

  • The UK chancellor George Osborne has confirmed that e-books will be taxed from the consumer’s European member state from 1st January 2015. A little-noticed section of last week’s budget announcement confirmed that from the start of next year, e-books and other e-services including broadcasting and telecommunications will be taxed in the European member state in which the consumer is located, as opposed to where the book is sold from. The move is set to ensure that e-books are taxed “fairly and helping to protect revenue,” the chancellor said. The decision was originally announced in 2013’s budget and means a loophole which allows companies like Amazon, Kobo and Barnes & Noble to sell e-books to the UK from Luxembourg will be closed. In the UK, e-books attract a 20% VAT whereas Luxembourg charges a much lower 3% VAT.

http://j.mp/1gUKfyW


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