Spain debates reduced VAT on e-books

Sat 1st Oct 2011

Following on from this week’s call for a French VAT cut for digital publishers, the opposition party in Spain has put forward a similar reduction proposal.

Currently, e-books, online newspapers and journals are classified at the higher, standard VAT rate in Spain, which is 18%. This compares to traditional newspapers and books, which are classified at the reduced VAT rate of 4%.

Across Europe, many countries classify digital print at the lower VAT rates, but most still levy VAT at the increased rate. The European Commission requires countries to follow the higher standard rate, but is reviewing this position in advance of a 2015 wholesale overhaul of the European VAT system.