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Under EU law at present, member states can apply reduced VAT rates to "physical" books and newspapers, but not to their electronic equivalents. (Photo: Zhao !)

Row between EU ministers halts e-book tax rate

An EU plan to reduce VAT rates for e-books and e-publications is under threat after the Czech Republic blocked it on Friday (16 June), in a move described as "hostage taking" by EU officials and diplomats.

They said that Prague was trying to gain some leeway on another unrelated VAT issue: the setting-up of a specific system - derogating from EU tax rules - to fight VAT fraud.

Both files were already agreed to at the technical level, and EU finance ministers were only expected to ...

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Under EU law at present, member states can apply reduced VAT rates to "physical" books and newspapers, but not to their electronic equivalents. (Photo: Zhao !)

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