European Parliament wishes lower tax rate on digital cultural goods
Yesterday, the European Parliament adopted a resolution on reducing the VAT rate on digital cultural goods. Currently in Europe there is a high tax rate (19%) on digital books because they are not considered as goods, but as services.
The European Parliament's resolution indicates their point of view regarding this topic. According to the Parliament, it is important that Member States should have a reduced VAT rate (6%) that applies to all cultural goods and services, no matter how they are delivered. One of the consequences of lowering the VAT rate could be that e-books are therefore a lot cheaper, which could benefit the growth of this new market. Through this resolution, the European Parliament declares that the European Commission should consider legislation relating to the reduction in the VAT rate on digital cultural goods.
In several European countries, including the Netherlands, digital products on a physical carrier are already included under the low VAT rate, such as books. If the Commission realizes European legislation, this means that products which are purchased online, will also be included in this low rate.
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