FRANCE AND LUXEMBOURG MAY FACE LEGAL ACTION OVER EARLY REDUCED RATES FOR DIGITAL BOOKS
August 1st, 2012
BY ALAN OSBORN
FRANCE and Luxembourg may be charged with infringing European Union (EU) VAT legislation as the European Commission, with officials alleging their reduced tax rates on the sale of digital books "is creating serious distortions of competition".
Digital books can be easily purchased in other EU countries than that of the consumer, with the VAT applied being that of the provider's - not the customer's - member state. Brussels is currently considering a move towards convergence of the VAT rates on traditional and digital books, but will not ...
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