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EU Commission to allow reduced VAT for digital newspapers

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EU Commission to allow reduced VAT for digital newspapers

The European Commission is planning on letting member states to reduce VAT on digital books and newspapers, EUobserver reported. Under the current system, EU member states are only allowed to apply reduced VAT rate to physical books and newspapers.

The decision on whether to apply the reduced VAT rate is left to member states themselves.

The proposal is part of a wider reform on EU's VAT rules, which will also address cross-border sales. Currently, businesses must register VAT in each EU country where they do business, but in the future they will be able to file their VAT returns through a single portal, the Irish Times reported.

Both ENPA and News Media Europe, the trade bodies representing European news publishers, welcomed the proposal.  

Author

Teemu Henriksson's picture

Teemu Henriksson

Date

2016-12-02 12:53

Author information

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