The European debate over whether to grant ebooks the same low VAT rate as print books may have just gotten a lot simpler. Luxembourg, the grand duchy of online tax evaders, has ruled that the “super-reduced 3% VAT” that has applied to print books will prevail for ebooks as well, beginning January 1, 2012. Luxembourg currently levies 15% VAT on most goods, including ebooks. The change will significantly advantage Amazon and Apple against other ebooksellers, since both companies have their European headquarters and tax domiciles in Luxembourg, from which they technically sell digital goods across Europe. (VAT is applied according […]
