the reduced rate of VAT to digital books, delivered electronically, is compatible with the principle of equal treatment.
In the VAT Directive, printed publications, such as books, member states may apply a reduced rate of VAT. On the contrary, the digital versions, other than digital books, should be subject to the normal rate, as they are delivered through a medium, such as CD-ROM .
The Court of justice of E.E. dealt with the relevant issue, upon request of the Polish Constitutional Court, which questions the validity of the above regulation. The doubts relate to the question of whether the difference in taxation is compatible with the principle of equal treatment.
“With the current proposals, the advocate general Juliane Kokott concludes that the validity of the VAT Directive is not affected for the reason that it allows the application of the reduced rate solely on the forms of books, newspapers and magazines, as well as in digital books, which are delivered through a medium,†says the Court.
However, in the opinion of the attorney general, in the context of fuzzy real situation that prevails today, it is a priority in the legislature of the Union – and not the Court – to proceed to the advanced assessment of the conditions of competition.
Reduced rate
The advocate general, in fact, considers that it does not impinge on the principle of equal treatment, nor the fact that the reduced rate applies to digital books, which are transmitted on the medium, but not in digital books transferred electronically.
Finally, as to the question of whether the difference in taxation is appropriate, the advocate general commented that the digital books transferred electronically, can in most cases be offered at a lower price than the equivalent, delivered on a material medium, even if subject to a higher rate of VAT.
Source
Except for reduced rate of VAT to digital books according.E.
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