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Electronic publications: Council adopts reform allowing reduced VAT rates.
EU member states can now apply reduced, super-reduced or zero VAT rates to electronic publications. On 6 November, the EU Council adopted a directive allowing alignment of VAT rules for electronic and physical publications. This opens up the possibility for states to implement reduced VAT rates in their national law if they wish.
Under the current VAT rules (Directive 2006/112/EC), electronically supplied services are taxed at the standard rate, whereas print publications may benefit from non-standard rates. The new directive will allow member states to apply reduced VAT rates to electronic publications as well. Super-reduced and zero rates will be restricted to those that already apply them to print publications.
The new rules will be in force temporarily, pending the introduction of a new, ‘definitive’ VAT system.
See EU press release.
