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Setback for reduced rates on e-books

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The European Commission’s proposal to align the VAT treatment of e-books with printed books has received a setback, as the Czech Republic finance minister blocked the measure at a meeting of ECOFIN on 16 June. The proposal, which forms part of the Commission’s digital single market strategy and VAT action plan, would allow member states the option of applying reduced rates to e-publications.

Ministers were also due to discuss a proposal to allow member states to apply a temporary general reverse charge mechanism until 2022 for supplies of goods and services above a threshold of €10,000, introduced in the VAT action plan as an anti-fraud measure. This is thought to be the sticking point for the Czech Republic, which wants the reverse charge to apply for a longer period. France opposes the reverse charge.

The meeting ended without agreement on either proposal, which will be carried forward to the Estonian presidency.

Issue: 1359
Categories: News , Indirect taxes , VAT