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Luxembourg raises ebook VAT to 17% May 2015


Luxembourg raises ebook VAT to 17% May 2015

Luxembourg has announced that it will reclassify e-books from its reduced VAT rate of 3% to its standard VAT rate of 17% from 1 May 2015.

The announcement was made this week following the European Court of Justice ruling on 5 March 2015 that France and Luxembourg must charge higher VAT on ebooks.  Luxembourg has originally dropped its e-book VAT rate to 3% in 2013 but was referred to the ECJ by the European Commission for incorrectly charging a reduced rate in contravention of the EU VAT Directive.  The ECJ highlighted that Luxembourg's reduced rates should be at least 5%.  The ECJ also ruled the same day that France should return e-books from its reduced VAT rate of 5.5% to its standard VAT rate of 20%.

Yesterday, France, Italy, Germany and Poland requested the EU reconsider VAT rates on e-books.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.