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European Commission Takes First Step Against Luxembourg and France’s Rogue eBook VAT Rates

July 5, 2012
By Michael Cader

Luxembourg and France clearly broke free from European Union law at the beginning of 2012 when they lowered the VAT applied to ebooks, to 3 percent and 7 percent respectively–with Luxembourg’s move particularly advantaging international players like Amazon that as a legal matter “sell” ebooks across Europe from Luxembourg. Now, six months later, the European Commission has dispatched a stern letter: “This situation is creating serious distortions of competition that are damaging to economic operators in the other 25 Member States since digital books can easily be purchased in a State other than the one where the consumer resides and, […]

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Filed Under: eNews, International News

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