Europeans Scrutinizing VAT on Books
Herbert R. Lottman -- Publishers Weekly, 5/21/2001
The Federation of European Publishers (FEP), meeting in general assembly in Stockholm, has issued an appeal for a reduction on value-added tax (VAT) rates on books. Rates now vary widely from country to country, with an enviable zero-rate applied by the U.K.
"It is illogical that the printed word is taxed differently depending on the type of publication," the statement reads; "in many member states the VAT rate for newspapers is lower than that for books." Moreover, declare the publishers, increasing trade via Internet puts countries with a high VAT rate at a competitive disadvantage. "A low rate of VAT on books promotes reading, education, and culture, and is therefore of vital importance to every democracy."
FEP further points out that as far back as 1991, the European Union's Council of Ministers agreed to encourage states to impose reduced VAT rates on books, and to urge countries with a zero rate to pursue that policy.
