• Luxembourg to apply standard VAT rate (17%) on e-books


    The European Court of Justice has declared that e-books are 'services' and not books and, therefore, European countries are not allowed to give them the same favourable tax treatment as paper books. Following this decision, the court has ordered France and Luxembourg to restore their standard value added tax (VAT) rates on e-books.

    In response, the Luxembourg VAT authorities have announced that as of 1 May 2015 the standard VAT rate of 17% will apply to e-books, instead of the reduced 3% rate.

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