Just yesterday a report from the European Commission on Competition and the Economy came out that has aroused a bitter controversy that is taking place not only in Spain but in the rest of Europe: VAT on ebooks.
This committee has asked the European Parliament to approve two measures, one of which will be to create a single portal for all Europeans where to pay VAT and other taxes, then the EU would be in charge of remitting the money to each country. The other measure would be to impose the same VAT rate for ebooks as for physical books and publications.
The first measure, the measure of the portal, is something that I very much doubt will be fulfilled, because despite being a good idea, each country is very suspicious of their taxes and they will not leave it in the hands of others.
Despite the happy news, the European Parliament has to approve this reduced VAT measure
But the second measure is something interesting, that many of us think should be so and unless Germany says otherwise, I think it will eventually come through and pass.
In Spain it would mean that ebooks would have 4% VAT, the reduced VAT that books and periodicals currently have in Spain and that it seems will not change. In addition, it would also mean an increase in the ebook market and a decrease in book sales.
Therefore, the Publishing Industry will protest such a situation, even the European lobby will try to stop this law, maybe they will succeed. But it is still striking that even the European commissions, not only the courts, they believe that the ebook and the book are the same thing and therefore they should have the same type of taxes what do you think? Do you think this law on VAT will be approved?