Author Topic: VAT being removed from Ebooks in the UK!  (Read 952 times)  

Offline Linjeakel

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VAT being removed from Ebooks in the UK!
« on: May 02, 2020, 09:33:35 am »
Woohoo!!

I only just read this but ebooks and online news services are no longer going to have VAT added to them to bring them in line with paper equivalents.

Amazon's response: "For titles where Amazon sets the price, we will reduce the prices of books not already on promotion, said a spokesperson. After receiving todays notification, we are working as fast as possible to lower prices for customers".

Let's hope the publishers who set their own prices are as quick to lower theirs - the temptation not to pass on the full amount of the savings may be too much.
Linda

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    Offline Ann in Arlington

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    Re: VAT being removed from Ebooks in the UK!
    « Reply #1 on: May 02, 2020, 11:07:51 am »
    Excellent news for you all! It always did seem a bit weird. I mean ... there's not a whole lot of "value added" with electronic books between the author putting it for sale and it getting to the buyer. Hope you see some REAL price reductions!
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    Offline archaeoroutes

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      • Alasdair Shaw
    Re: VAT being removed from Ebooks in the UK!
    « Reply #2 on: May 08, 2020, 03:27:58 am »
    As an author, I've been absorbing the VAT cost until now. So, no I won't be reducing my prices.
    I wanted to sell at 3.99, 5.99 etc and will continue to do so. It is nice that I will now get a few more pennies per book.

    Offline LDB

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    Re: VAT being removed from Ebooks in the UK!
    « Reply #3 on: May 08, 2020, 09:52:10 am »
    A tax being removed. Almost unheard of. Any guesses how long until they put it back?
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    Offline archaeoroutes

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      • Alasdair Shaw
    Re: VAT being removed from Ebooks in the UK!
    « Reply #4 on: May 09, 2020, 11:27:25 pm »
    I don't think it will come back, at least not in the same anomalous way.
    It was applied almost accidentally. Books have never had VAT,  it there was VAT on digital things, and ebooks got lumped eith the latter not the former.

    Offline Sophie Newton

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    Re: VAT being removed from Ebooks in the UK!
    « Reply #5 on: June 27, 2020, 07:25:51 am »
    Removal of VAT from eBooks had already been planned for December 2020, and the UK government announced at the end of April that this was being brought forward to May 2020.

    Publishers and readers had been lobbying for this change for years. But it took a pandemic for it to be considered urgent, as explained in the policy paper: The objective of this measure is to support literacy and reading in all its forms. Following the outbreak of the coronavirus (COVID-19) pandemic and the need for people to stay at home, the government has decided to bring forward the implementation date to 1 May 2020 to reduce the cost of access to online publications during these challenging times when many people are confined to their homes and schools are closed.

    So I do not think VAT on eBooks will return. However, VAT still applies to audiobooks. The Royal National Institute for the Blind (RNIB) has expressed disappointment about this.

    The change had an interesting side-effect for me. As an author, I had chosen the option to select a price in my primary territory and let Amazon automatically convert it into other currencies for other territories. So the re-pricing of my book on amazon.co.uk resulted in a price reduction on all the other Amazon sites. I think I would be able to manually reinstate previous prices on the other sites, but I decided to let it be. (In any case, exchange rates are changing all the time, so international prices will get out of synch unless the author or publisher is on the case all the time.)



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    Offline Linjeakel

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    Re: VAT being removed from Ebooks in the UK!
    « Reply #6 on: June 27, 2020, 08:09:52 am »
    It's interesting to hear an author's point of view - it's almost always the case that changes bring good things for some and for others, not so much.

    I agree about audio books - given the lifeline they must represent for blind and partially sighted people, it seems very unfair to tax them. At the very least I think registered blind people should be able to get them VAT free.
    Linda

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