Luxembourg raises ebook VAT to 17% May 2015

Fri 20th Mar 2015

Luxembourg has announced that it will reclassify e-books from its reduced VAT rate of 3% to its standard VAT rate of 17% from 1 May 2015.

The announcement was made this week following the European Court of Justice ruling on 5 March 2015 that France and Luxembourg must charge higher VAT on ebooks.  Luxembourg has originally dropped its e-book VAT rate to 3% in 2013 but was referred to the ECJ by the European Commission for incorrectly charging a reduced rate in contravention of the EU VAT Directive.  The ECJ highlighted that Luxembourg’s reduced rates should be at least 5%.  The ECJ also ruled the same day that France should return e-books from its reduced VAT rate of 5.5% to its standard VAT rate of 20%.

Yesterday, France, Italy, Germany and Poland requested the EU reconsider VAT rates on e-books.



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