Luxembourg cuts e-book VAT to 3%
- Feb 25, 2019 | Richard Asquith
Luxembourg has agreed to lower its VAT rate on electronic books from the standard rate of 17% to the super reduced rate of 3%. The move follows the agreement between EU states to permit the harmonisation of rate on e-books to their physical equivalent.
The measure has been back dated to 1 January 2019. Other states, including Ireland and Malta have already confirmed plans to cut their rates.
Luxembourg was at the centre of the debate to harmonisation online book and journals’ VAT rates in 2015. An European Court of Justice ruling found France and Luxembourg had broken EU VAT rules by having lower rates on online books.
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