Sapa-dpa Luxembourg
ELECTRONIC books are not eligible for a reduction in sales tax under EU rules, the European Union’s top court said yesterday, after the bloc’s executive challenged low rates being applied in France and Luxembourg.
E-books, which are bought online and can be read on computers, smartphones or e-readers, are subject to a sales tax of 5.5 percent in France and 3 percent in Luxembourg – compared to a full tax rate of 20 percent in France and 17 percent in Luxembourg.
But the European Court of Justice found yesterday that books are only eligible for value-added tax (VAT) reductions if they are provided on a “physical means of support” – paper.
“Such support is not included in the supply of electronic books,” the Luxembourg-based court wrote. The judges also argued that e-books are an “electronically supplied service” that cannot be granted a lower tax rate under EU law.
They criticised Luxembourg’s “super-reduced VAT rate” of 3 percent, saying that rates below 5 percent were generally prohibited under EU rules.
– Sapa-dpa