Written question asked by Lord Pearson of Rannoch (UK Independence Party), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Monday, 24 September 2012.

EU: VAT

Question: To ask Her Majesty’s Government what assessment they have made of the effect on United Kingdom interests of the application to the sale of digital books and other digital publications of a 3 per cent VAT rate by Luxembourg and a 5.5 per cent VAT rate by France. [HL2180]

Answer: The Government do not believe that the reduced rates applied to digital books and other publications by France and Luxembourg, the effects of which it has not assessed, are compatible with the European Council Directive on the common system of value added tax. It is in the UK’s interest to ensure that agreed European Union rules are enforced. The Government made their views clear to the European Commission, part of whose function is to ensure that EU law is upheld by member states. In a press release on 3 July 2012 the Commission announced the start of investigations into whether there had been an infringement of EU level legislation.

Secondary information

Type: Written question
Reference: 739 c358WA; HL2180
Session: 2012-13
Notes: Answer received between Monday 17 September and Monday 24 September 2012.
Subjects: Electronic publishing France VAT Luxembourg
Link: View this Written question on www.publications.parliament.uk