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Reader devices

Reader devices

Posted Aug 2, 2012 7:37 UTC (Thu) by madhatter (subscriber, #4665)
In reply to: Reader devices by dlang
Parent article: The Nexus 7: Google ships a tablet

The situation is complicated in some jurisdictions (such as the UK, and I suspect the rest of the EU but don't know for sure) because paper books attract no sales tax while e-books do. That gives the poor e-book an instant 20% markup over its paper cousin here, or to put it another way, the first 17% of savings you make on an e-book are promptly eaten up by the Exchequer.

I happily stipulate that I know of no rational argument whatsoever why that should be the case; but it is.


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Reader devices

Posted Aug 2, 2012 8:04 UTC (Thu) by dlang (✭ supporter ✭, #313) [Link]

currently many of the publishers think that they should be able to charge more for the e-book than for the paper book, their stated theory is that the e-book is 'more convenient' and therefor worth more to the purchaser

Reader devices

Posted Aug 2, 2012 20:49 UTC (Thu) by khim (subscriber, #9252) [Link]

IOW they trying to have theirs's cake and eat it too. They play “market” games with this approach which nullifies their initial bargain. At this point we suddenly get another choice: free PDFs and MKVs found on the internet. Convenience drives prices up but wider availability drives them down. I don't think the prices they try to demand will stay.

Reader devices

Posted Aug 2, 2012 16:57 UTC (Thu) by anselm (subscriber, #2796) [Link]

Here in Germany, e-books are taxed at the standard rate of 19%, while paper books qualify for a reduced rate of 7%. In principle, the rationale behind the reduced rate is to make it easier for the poor to afford the basic prerequisites for civilised life; apparently anyone who can afford a PC, tablet computer, or dedicated e-book reader does not require that sort of assistance.

On the other hand, some of the 7% exceptions are really weird; donkeys are taxed at 19% but mules, like horses, at 7%. Donkey meat as a food item, on the other hand, is taxed at 7%, too. Tomato juice is taxed at 7% but tomato ketchup and tomato sauce at 19%. The junior partner in the German coalition government, the Liberal party (FDP), recently made itself quite unpopular by arranging for the tax on hotel accommodation to be lowered to 7%, in a move that was widely considered catering to minority interests.

Reader devices

Posted Aug 9, 2012 21:05 UTC (Thu) by Wol (guest, #4433) [Link]

Not sure why e-books (and books with CDs) attract VAT, but it's an unfortunate fact that once VAT has been imposed it can't be removed. But I suspect it's a hangover from the old "VAT is charged on luxury items, not essentials", and when they first came out CDs and e-books were classed as luxuries.

That's why VAT is now 5% on gas and electric - once UK law put it on, European law prevented it being taken off.

Cheers,
Wol

Reader devices

Posted Aug 10, 2012 16:22 UTC (Fri) by nix (subscriber, #2304) [Link]

Well, that's a classic example of the UK's tendency to over-implement EU directives far more officiously than anyone else. Other EU nations have occasionally removed VAT on existing things, EU directives be damned -- and the directive in question does not prevent you from making anything be VAT-rated at 0% (which is not technically the same as making it VAT-exempt but has the same effect).

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