Iceland scraps e-book VAT 2019
- Apr 9, 2018 | Richard Asquith
Iceland’s Ministry of Finance and Economic Affairs is to reclassify electronic books as zero-rated for Value Added Tax from 1 January 2019. E-books are currently subject to the reduced VAT rate of 11%.
Iceland is a member of the EEA, and not a member of the European Union where countries are obliged to charge the full standard VAT rate on e-books. This is despite printed books enjoying the right to reduced or zero-rating. The European Commission has proposed freeing member states to set their reduced rates as they wish.
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