German e-book VAT 7%

Germany has committed to introducing legislation to reduce the VAT rate on e-books, online journals and newspapers from 19% to 7%.

The move follows the agreement between the EU Council to permit countries to harmonise their reduced/nil rated physical books with their electronic equivalents. A number of EU countries have already implemented the reduction, with others to follow this year.

Germany is likely to approve the change in the next few months; but unlikely to implement the reduction until 1 January 2020.