Taxation and Customs Union

Public Consultation on reduced VAT rates for electronically supplied publications

Title

Public Consultation on reduced and super-reduced VAT rates for electronically supplied publications

Policy fields

Taxation

Target groups

The open public consultation will seek the views of business, the public and representative organisations

Period of consultation

From 25.07.2016 to 19.09.2016

Objective of the consultation

  • Member States have the options to tax printed books, newspapers and publications at a reduced rate (minimum 5%) and some Member States were granted the applications of VAT rates lower than 5% (super-reduced rates) including exemptions with a deductions right of VAT at the preceding stage (so called zero rates) to certain printed publications. On the other hand, digital publications that are electronically supplied have to be taxed at the standard VAT rate.
  • A harmonisation of VAT rates for electronically supplied services and in particular electronically supplied publications was a need until 2015. Since 1 January 2015, with the entry into force of new "place of supply" rules , VAT on all telecommunications, broadcasting and electronic services is levied where the customer is based, rather than where the supplier is located. Suppliers can therefore no longer benefit from being located in the Member State with the lowest VAT rates.
  • While acknowledging the differences between printed and electronically supplied publications with regard to the format, they offer the same reading content for consumers and the VAT system needs to keep pace with the challenges of today's digital economy.
  • Having carefully considered these issues, the Commission made a commitment in its 2016 Actions Plan on VAT (Com (2016) 148 final) indicating that it will make a legislative proposal in 2016 to allow Member States to apply to electronically supplied publications the same VAT rates that Member States can currently apply to printed publications. 

The objective of the consultation is to seek the views on:
1. The commitment by the Commission in its 2016 Actions Plan on VAT to:
(a) allow Member States the application of reduced rates for electronically supplied publications
(b) allow Member States the application of super-reduced and zero rates for electronically supplied publications
2. The definition and scope of electronically supplied publications
3. The potential impacts of reduced rates for electronically supplied publications

How to submit your contribution

Respondents are offered an online questionnaire via the EU Survey Application which is available at the link below.  Responses are submitted through that application.

View the questionnaire

Questionnaire

Contact details

responsible service

Directorate-General for Taxation and Customs Union
VAT - Unit TAXUD/C1

e-mail

TAXUD-C1-SECTOR-D@ec.europa.eu

 

postal address

European Commission
Directorate-General for Taxation and Customs Union
VAT - Unit TAXUD/C1
Rue Joseph II 79, Office J79 05/065
B-1049 Brussels
Belgium 

View the contributions

In the interests of transparency, organisations have been invited to provide the public with relevant information about themselves by registering in the Interest Representative Register and subscribing to its Code of Conduct. If the organisation is not registered, the submission is published separately from the registered organisations.

Results of consultation and next steps

   

Protection of personal data