The European & International Booksellers Federation- EIBF – welcomes the decision of the Economic and Financial Affairs Council (Ecofin) of 5 December, which unanimously adopted new rules for VAT on e-commerce.
The establishment of a 10.000€ threshold for start-ups and SMEs in yearly cross-border online sale, under which the home country VAT rate will apply, will definitely enable booksellers to offer more (e)books on foreign markets, as this new measure reduces administrative formalities and will ultimately benefit to consumers.
Reducing the number of pieces of evidence to one to identify customers’ location is excellent news for those of the booksellers whose turnover is up to 100.000 € .
EIBF welcomes both decisions, which represent excellent progress in the completion of the Digital Single Market Strategy, as it will facilitate cross-border trade for many SMEs, booksellers included.
in other Member States. EIBF co-President Fabian Paagman commented: “Booksellers have embraced the digital revolution and a growing number of booksellers are providing their customers with an e-book offer, on their home market, and increasingly across borders. The fulfilled commitment of the Commission and the Council to reduce VAT compliance burdens for SME’s and micro SME’s, both within Member States and across borders is a real relief”.
Added co-President Jean-Luc Treutenaere: “Booksellers are keen to sell as many e-books as possible and the establishment of this 10.000€ yearly threshold represents a real step forward for SMEs, as it will enable them to offer a broader range of e(books) to consumers across borders.”
EIBF is looking forward to hearing about further progress in the months to come, especially regarding lower VAT on e-books.
The full press release can be downloaded in attachment.