Residents of the United Kingdom will see an increase in tax for apps, eBooks and audiobooks in 2015. Amazon, Apple, B&N and Kobo will be forced to charge 20% VAT, which will drastically increase the overall cost. Major eBook retailers currently charges less tax for customers in the UK because they are based in Luxembourg, where the VAT is on average 3%. The UK government … [Read more...] about eBook Prices to increase by 20% in the UK in 2015
VAT
New Legislation in South Africa Mandates eBook Retailers to Register as VAT Vendors
The recent announcement by the South African finance ministry that has made it mandatory for all foreign vendors selling ebooks in the country to register as VAT vendors has been applauded by the local industry. The Publishers' Association of South Africa as well as the South African Booksellers' Association has been pushing for just a clause which them claim will make it a … [Read more...] about New Legislation in South Africa Mandates eBook Retailers to Register as VAT Vendors
Google Accused of Dodging Taxes in South Africa
Close on the heels of Google having to deal with some uncomfortable tax evading accusations in Europe, the search giant is facing a somewhat similar scenario in South Africa as well. Google has drawn the ire of the local media company Naspers, which has accused the company of following unscrupulous business practices in the African nation by not only denying the country its … [Read more...] about Google Accused of Dodging Taxes in South Africa
Turkey Enacts Law to Lower VAT on eBooks
One of the initial debates about the recent growth of digital publishing was in the way that ebooks were viewed by consumers and by the publishing industry. Some governments, like Germany's, initially went so far as to treat ebooks as though they were two separate entities, both a book and a piece of software. This issue caused major concern in Germany where the tax … [Read more...] about Turkey Enacts Law to Lower VAT on eBooks
Brussels Vote Might Eliminate the VAT on eBooks in the UK
The EU is having a vote in Brussels this week that might have a reverberating effect on the taxing of eBooks. The UK has no VAT fee when it comes to buying paperbacks or hardcovers but eBooks are subject to a 20% VAT fee. This has prompted companies like Kobo and Amazon to operate in Luxembourg where the VAT is only 3%. The new vote could feasibility eliminate the VAT on … [Read more...] about Brussels Vote Might Eliminate the VAT on eBooks in the UK
EU to Take Stronger Stance on VAT over eBooks
The VAT, or value added tax, on ebooks has been a thorn in the side of digital publishing for some time. Going back to the early stages of the recent years' e-reader explosion when Germany was the first country whose digital publishers took issue with the way ebooks are taxed, to the current state of countries outright ignoring the mandated taxation rate in order to lure … [Read more...] about EU to Take Stronger Stance on VAT over eBooks
Amazon Discloses UK Sales Figures to Parliament
The major ebook distribution retailers are notoriously tight-lipped when it comes to giving out specific information on their ebook and e-reader sales, but Amazon was recently forced to disclose some highly sensitive information to Parliament’s PAC, or Public Accounts Committee, alongside fellow giants Starbucks and Google over disputes about the amounts of taxes … [Read more...] about Amazon Discloses UK Sales Figures to Parliament
Amazon Contracts Call for Discount to Cover VAT
As most of the “Amazon Tax” battles have been resolved in the US, Amazon is facing criticism over its practices with publishers in Europe over VAT, or value added tax. VAT battles have waged over ebooks across Europe since the rise in popularity of digital reading, not just with Amazon but with ebooks in general. Some countries levy as much as a 20% tax on ebooks, declaring … [Read more...] about Amazon Contracts Call for Discount to Cover VAT
How Geography Affects Books in the Digital Age
Neelie Kroes for The Guardian UK posted a poignant and interesting opinion piece last week that asks some of the questions that rest in the back of most digital readers’ minds. Basically, readers want to know why we are still treating ebooks in much the same way as their computerized counterparts, and what are we to do about it? “In the United States, where ebooks are 31% of … [Read more...] about How Geography Affects Books in the Digital Age
Amazon Benefits from Higher VAT in the UK for eBooks
Parliament in the United Kingdom recently convened to discuss the issue of lowering the VAT on ebooks sold in the country. Many publishing companies wanted to lower the 20% extra people pay for their digital ebooks. A few days ago they again decided not to reduce the fee, which is a boon for Amazon. The Bookseller reports David Gauke, the UK’s exchequer secretary, said the UK … [Read more...] about Amazon Benefits from Higher VAT in the UK for eBooks