Feeds

Ebooks must stay fat with VAT, blame the EU, MPs told

UK.gov is the cat with the eggnog cream

5 things you didn’t know about cloud backup

When it comes to applying VAT to ebooks, the UK government remains bound by EU law, the Exchequer Secretary to the Treasury told MPs yesterday.

In October 2010 HM Revenue & Customs described the process of supplying "text by electronic transmission" via the internet - such as Amazon flogging ebooks on its Kindle Store - as standard-rated (the 20 per cent VAT rate).

Many publications, including printed books, maps and charts, magazines and newspapers, are zero-rated, but ebooks are classified differently. And Treasury minister David Gauke, when quizzed by Labour MP Tom Blenkinsop, reiterated that the ebook ruling remained unchanged.

"Under EU law, VAT on electronic books must be charged at the standard rate," Gauke said.

"Existing agreements with our EU partners do not allow the UK or other member states to introduce a new zero-rate or extend an existing one to relieve ebooks from VAT and they specifically exclude electronically supplied services, which includes ebooks, from a reduced rate."

That means that a customer wanting to buy the £12.99 digital version of Amazon's bestselling book of the year - Walter Isaacson's biography Steve Jobs - will be expected to fork out £2.22 more than they would be required to pay for the hardback copy at £10.77 a pop.

Amazon simply states on its website that: "Unlike print books, digital books are subject to VAT." ®

5 things you didn’t know about cloud backup

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?