Tag Archives: digital newspapers

South Africa – New Electronic Services Tax postponed till June 1st – Materials and recording of PwC Webcast of 25 March 2014

Following our previous post, you can now access the recorded version of our Webcast on South Africa’s plans to apply 14% VAT on all electronic services, even those bought from foreign businesses.

On 28 March the South African National Treasury published its “Electronic Services Regulations” in the Government Gazette and released a media statement, announcing a postponement of the effective date till June 1st, 2014.

The changes will make it compulsory for foreign e-commerce suppliers of electronic books, music and other digital services to register for VAT in South Africa.

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France: Towards a super reduced VAT rate for digital press publications

According to a recently published press release, France is considering to apply a super reduced VAT rate for online press publications (2,1% instead of 19,6%) and this without the approval of Brussels.

As reported in previous posts, France and Luxembourg already started on 1 January 2012 to apply (super) reduced VAT rates for e-books (5,5% in France and 3% in Luxembourg) making them the cheapest countries to sell e-books in the whole EU.

The EU Commission saw this as an infringement against the EU VAT Directive and initiated infringement proceedings against both France and Luxembourg (Case No 2012/4080).

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EU: Public consultation on new VAT rates – important for ebooks, digital newspapers and other eservices

In line with its previous indications the European Commission launched a public consultation last week in relation to the review of the reduced VAT rates. The public is invited to give their opinion on certain reduced VAT rates to see if they efficiently serve the purpose what they were created for.

The consultation forms part of the Commission’s VAT reform plans to build “a simpler, more robust and efficient VAT system”. And Commission is asking business for their input to this matter. It is your chance to have a saying in the much aniticpated reform of the EU VAT system.

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EU: VAT treatment of digital newspapers vs. their paper version

The European Parliament has in September 2011 published answers to questions of the European Parliament concerning the VAT rate of on-line newspapers and magazines. They have addressed the issue that the digital version of newspapers and magazines is taxed at the higher VAT rate then their paper version although the content is more or less the same.  This is one of the items which should be further discussed and addressed in the intended reform of the EU VAT system.
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