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

The 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.

About Andras Salanki

Manager PwC Switzerland email: andras.salanki@ch.pwc.com Office: +41587924536

Andras Salanki is an international VAT advisor with 7 years of relevant professional experience. He spent one year on secondment in California, US, where he advised US multinationals on global VAT projects and also gained experience with IT and Internet companies based in the Silicon Valley.