Germany to Reduce VAT on eBooks

Germany is planning to reduce the VAT rate on eBooks and audio books from the country's standard VAT rate of 19% to the reduced rate of 7%, which is the same rate applied to printed books. The move would come despite European Commission opposition. Both France and Luxembourg were referred to the European Court of Justice in 2013 for doing the same.

The reason that reduced VAT rates on eBooks is an issue, is because the EU VAT Directive does not provide for reduced rates on eBooks, although it…