'Judge books by their covers', EU court says in tax ruling

Описание

France and Luxembourg lost a legal battle on Thursday to offer lower sales tax on e-books. A top European court backed EU regulators that only paper books qualified. EU rules say the 20 member states can set lower rates of value-added tax on printed books. The European Commission said two years ago that the 5.5 percent and 3 percent rates imposed by France and Luxembourg respectively are illegal. Officials said the rates cannot apply to e-books as they qualify as an “electronically provided service.” Judges at the Luxembourg-based European Court of Justice agreed. They rejected the argument that e-books should be considered a product, rather than a service. Publishers and booksellers are angry at losing the legal fight. Writers, they say, earn more royalties from e-books. Retailers also say the ruling in Luxembourg will put people off ‘electronic reading’. They have called on the European Commission to revise the rules.