In K Oy v Keskusverolautakunta (C-219/13 – 11 September 2014) the CJEU found that national courts should decide whether e-books and audio books should be treated like paper books for VAT purposes.
K is a publishing company with activities which include the publication of general literature and textbooks. It also publishes audio books and e-books available on a range of physical supports; in particular CDs CD-ROMs and USB keys. The issue was whether books published on physical supports other than paper could be regarded as books for the purpose of VAT under EU law and Finnish law and therefore subject to a reduced rate.
K contended that the exclusion of books published in non-paper form from the reduced rate of VAT was contrary to the principle of fiscal neutrality – which precludes similar goods which are in competition with each other from being treated differently.
The CJEU...
