Written by Cécile Remeur (2nd edition),
The fact that print and digital publications are currently subject to separate value added tax (VAT) rates essentially means that products that are considered to be comparable and substitutable are being treated differently to one another. This situation results from rules which, on the one hand, allow Member States to apply reduced rates to printed publications, but on the other exclude this possibility for digital publications. In addition, the recent evolution in the VAT framework means that VAT on digital services should be levied in the Member State where the consumer is based (thus protecting the single market from application of different rates within a Member State because of the different location of providers).
The question of broadening the possibility to apply reduced rates to all publications, be they print or digital, is addressed in the proposal presented as part of the VAT digital single market package, and adopted by the European Commission on 1 December 2016. The Economic and Monetary Affairs (ECON) committee has prepared a report on the proposal, with a vote in Plenary scheduled for 1 June 2017.
|Proposal for a Council directive amending Directive 2006/112/EC, as regards rates of value added tax applied to books, newspapers and periodicals
|Committee responsible:||Economic and Monetary Affairs (ECON)||COM(2016) 758
Consultation procedure – Parliament adopts a non-binding opinion)
|Rapporteur:||Tom Vandenkendelaere (EPP, Belgium)|
|Mady Delvaux (S&D, Luxembourg)
Bernd Lucke (ECR, Germany)
Cora Van Nieuwenhuizen (ALDE, the Netherlands)
Paloma López Bermejo (GUE/NGL, Spain)
Molly Scott Cato (Greens/EFA, UK)
Barbara Kappel (ENF, Austria)
|Next steps expected:||Vote in plenary|