European parliament wants to lower vat on digital content

0
328

The European Parliament wants content that is digital is to be sold, such as e-books and music downloads, also under the lower vat rate are allowed to fall. At this moment EU member states have no lower rate for any such content.

Writes that the European Parliament in a resolution adopted Thursday, was adopted. In European law is currently established that a lower vat rate may apply to, for example magazines, music, movies, newspapers and books, but not for digital content: a music cd is considered as a product, while a muziekdownload according to the EU rules a service. Therefore, on digitally distributed content for a minimum of 15 percent vat be charged. Mep Judith Sargentini Party calls it ‘an absurd situation’.

In the Netherlands attack books as a result, under the vat-rate of 6 percent, while on e-books via the internet to be purchased the much higher standard rate of 19% vat must be paid. Meps want that situation to change: it must be according to the parliamentarians is not a part or a product is physically or digitally distributed.

The EU-tax policy would, according to the parliamentarians should be adjusted to the lower rate of vat on online content, says the resolution. Moreover, digital content under the lower vat rate is to be sold, but this must be on a physical medium such as a cd-rom will be distributed.

Eurocommisaris Kroes said earlier already that they are in favour of a reduced vat rate on digital content. According to her, hinders the difference between the vat rates of the innovation. The EU member states would, however, conservative preparation with respect to a vat reduction.