Italy: reduced VAT rate of 4% on e-books from 1 January 2015

PwC_R_Vinesh.Naidoo_Yoginee.Sharma_Vernie.Slabert_SouthAfrica_Jhb_P_CW_0017.JPGThe Italian Parliament passed the 2015 Finance Law on 22 December, which applies the 4% VAT rate to e-books as of 1 January 2015. According to the legislation any publication that is identified by an ISBN code (International Standard Book Number) and transmitted through any physical or electronic means, should be considered as a book and, as a result, subject to the 4% reduced VAT rate.
This is a rather interesting move in light of the on-going infringement procedures which were initiated by the EU Commission against France and Luxemburg for treating e-books and physical copies in the same way by applying the reduced VAT rates also to e-books.

For further information you can contact Luca Lavazza (Partner), Alessia Angela Zanatto (Director) or Davide Accorsi (Senior Manager) of PwC Italy.

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