The European Commission has approved a proposal which will enable Member States to reduce the VAT rate applicable to e-books.

Currently the UK zero-rates books, newspapers, and periodicals, but the same reading materials are standard rated if provided in electronic format.

Under the latest EC approved changes, which currently have no confirmed commencement date, the UK will be entitled to allow the zero-rating of electronic versions as long as they are not used for advertising and are not wholly or predominiately consisting of audible music or video content.

It remains to be seen if HMRC will take the opportunity to zero-rate these services or whether they will leave the inconsistancy in place.


Colouring books: zero-rated for children not for adults