Survey highlights print book, ebook tax discrepancies

A report by the International Publishers Association (IPA) and the Federation of European Publishers has found only 22% of 79 surveyed nations—including Australia—apply the standard Value Added Tax (VAT) or Goods and Services Tax (GST) to print books. In contrast, the report found that 69% of nations apply the standard VAT/GST to ebooks. For print books, the global average rate is 5.75%, with Denmark applying the highest rate at 25%. The survey found that most Latin American and African countries apply a zero rate, while within the European Union, the UK and Ireland are the only countries to apply a zero rate, and Denmark and Bulgaria are the only countries to apply a full VAT/GST. For ebooks, the average VAT/GST rate was 12.25%, with Hungary applying the highest rate at 27%. IPA policy director José Borghino said ebooks ‘continue to labour under an unwarranted and obsolete discrimination’, and called for a ‘zero-rating for both printed books and e-books as the best way to support reading, education and a thriving knowledge economy’. The US, where each state has its own sales tax regime, was not included in the survey.

Category: International news