France and Luxembourg cannot apply a reduced rate of VAT to the supply of electronic books.

[suraj panigrahi]

Dear All,

France and Luxembourg cannot apply a reduced rate of VAT to the supply of electronic books, in contrast with paper books "The EU's highest court recently ruled that the European Union countries may not extend tax exemptions for books to include ebooks, adding that it considers downloadable ebooks to be services. E-books must be subject to the full rate of value-added tax (VAT), the court ruled. "

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[Munesh Kumar]

Thanks Suraj for bringing this information here.

It is really interesting topic and decision from commerce point of view and more or less with our profession. I don't have much know knowledge on commerce aspects. I would request to all the senior professionals to put their view after reviewing  it and mention the effect at International level and how it is going to affects us.

Thanks...