EBooks will pay the same VAT in Spain as books in paper format

eBooks

For a long time in Spain, eBooks or digital books were seriously discriminated against compared to books in paper format, as they were taxed with a VAT of 21%, very different from the 4% with which traditional books are taxed. However in the last hours Luis de Guindos, the Minister of Economy, of the government of Mariano Rajoy, has announced that this difference has come to an end.

At the beginning of December the European Commission, always reluctant to any change on this issue, approved a reform so that Member States of the European Union could apply a reduced or super-reduced VAT rate to books in digital format. This has opened the door for Spain to decide to equalize the VAT of eBooks and books in paper format.

At the moment, few countries have decided to take a step forward, equating the VAT of books, whatever the format they are, but for once Spain has taken the lead in something, making the announcement by the hand of Luis de Cherries. In this article we are going to explain where the difference between the taxes on books came from and how it affects us that eBooks will have a VAT of 4% from now on.

An inequality difficult to understand

For a long time we have talked about the inequality that existed between the taxes that were applied between the different types of books, without ever understanding the decisions of the European Commission. Some countries such as France or Luxembourg dared to oppose one of the highest bodies of the European Union, lowering the VAT on eBooks, to later have to rectify by a direct order of the Court of Justice of the European Union.

However, now the European Commission has changed its mind, and has opened the door for the countries of the Union to apply the VAT they want to eBooks, but within understandable limits.

"Whether paper or digital, a book is a book and a newspaper is still a newspaper"

These words bear the signature of Pierre Moscovici, Commissioner for Economic Affairs of the European Commission and that until a very short time ago they were very different, and they led us to believe that books, because they were physical or digital, were different.

What does the VAT reduction on eBooks entail?

eBooks and books

As we have already explained, each country of the European Union will have the power to set the VAT with which it is levied on digital books. In Spain, for example, it has already been officially announced that the tax on digital books will be equated with that on paper books.

Unfortunately At the moment it has not been specified when this will happen, although we have learned thanks to Luis de Guindos that it will be a direct and not gradual application measure., which for those of us who are readers in digital format is good news. Assuming, we should think that this measure will come into effect with the new year, although it is to be imagined that some change will need to be made in the current legislation, and perhaps the reduction of VAT on digital books may take a while longer.

Regarding what may happen from now on, there are some doubts, although it seems clear that we will see how the price of digital books is reduced, in some cases to a great extent. If we look at the usual prices that eBooks have on Amazon, we can conclude that they usually have a price of between 9 and 12 euros. If we applied the 17% reduction in VAT to these prices directly, the prices would be between 7.5 and 10 euros.

Also the digital books that are the majority in Amazon (up to 50%) have a price of 4.99 euros that if the VAT were lowered they would be left with a price of 4 euros round. Of course, we will have to see what price publishers and publishers set for books, now that with the lowering of VAT they can easily raise their profits.

Of course, this VAT reduction for eBooks will affect all digital books sold in the market equally, without leaving any aside, and being able to choose between a book in physical format or a digital book under the same conditions, at least when it comes to taxes.

Opinion freely

They have had to spend years, having to pay a different VAT when buying a book in paper or digital form, but it seems that this absurdity that we have reproached on so many occasions, has come to an end. I have to say that as you are surely happy, although you still do not tend some things.

I honestly still do not understand why it has taken so long for the European Commission to rectify its initial position, that nobody but them understood, and also that some governments, among which was the Spanish, to show their reluctance to that position. The change in position of the Commission, we do not know for sure why it has occurred, and at least I would love to know why it has occurred and that is that when you start or place yourself in the absurd, it is not bad to know how it has happened. out of there.

Finally, now we will have to see what impact the VAT reduction has for digital books, which as we have already explained would lead to a drop in prices, which at least I am not too clear about and that is that many publishers will see the perfect opportunity to maintain the price of your eBooks and thereby increase your profits.

Do you think that the reduction of the VAT of eBooks up to 4% will have as a consequence the reduction of its price?. Tell us your opinion in the space reserved for comments on this entry, in our forum or through any of the social networks in which we are present.


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  1.   a lot of Spanish said

    I am Spanish Spanish !!! (read singing with football anthem music)