The cost of eBooks are poised to dramatically increase at the beginning of the new year, due to changes in VAT. Readers will end up having to pay anywhere from 17% to 25% more on each title, depending on the country they live in. The European Commission recently unveiled a new ruling where member states will be taxed in the European member state in which the consumer is … [Read more...] about The Cost of eBooks to Dramatically Increase in 2015
VAT
EU Announces Changes to VAT on eBooks
The European Court of Justice has just concluded that EU member states are free to charge differing rates of VAT on eBooks and paper books. This will allow all countries in Europe to basically change their VAT on all books and not break ‘fiscal neutrality’, an EU concept whereby markets for the same goods are distorted by varying tax rates. There have been major … [Read more...] about EU Announces Changes to VAT on eBooks
Allegations that Amazon Seeks New Publishers Terms in UK
It's an understood truth in publishing that anyone who works for the industry keeps a tight lid on information, especially where sales talk is concerned. From numbers of units sold to overall sales of any given book, no one is going to speak up with specifics unless he has to (or unless he's a pioneer like Hugh Howey who wants to see transparency in order to foster good … [Read more...] about Allegations that Amazon Seeks New Publishers Terms in UK
UK Rules eBooks Aren’t Books as Far as Taxation Is Concerned
There's no relief in sight for UK readers, as Parliament declared that there was no good reason or means to reduce the outrageous 20% VAT on ebooks. While their print counterparts enjoy a zero-percent tax--like many state and local governments in the US who feel that book purchasing should be supported--ebooks are still treated in much the same way as a software download and … [Read more...] about UK Rules eBooks Aren’t Books as Far as Taxation Is Concerned
eBook Prices to increase by 20% in the UK in 2015
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
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