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Coronavirus Lockdown Hastens E-book VAT Exemption

Posted on the 01 May 2020 by Thiruvenkatam Chinnagounder @tipsclear

Coronavirus lockdown hastens e-book VAT exemption

The price of e-books in online stores is reduced immediately after the government has submitted plans to eliminate VAT on online publications.

The 20% tax was expected to have gone down in December, but is now coming into effect due to the coronavirus pandemic.

It means that the cost of an e-book that costs £ 12, for example, should drop to £ 10.

E-newspaper subscriptions could decrease by £ 25 per year, although the owner of the Times said his subscription would remain the same.

Chancellor of the Exchequer Rishi Sunak said he wanted to make it "as easy as possible for people across the UK to get the books they want while they stay at home and save lives."

"This is why we have quick plans to eliminate VAT on all electronic publications, which will make it cheaper for publishers to sell their books, magazines and newspapers."

Amazon manufactures its own e-reader line and is one of the largest digital book sellers.

He said it was working "as fast as possible to lower prices" for customers, with many titles already lower.

"We welcome the government's decision to remove VAT on e-books due to the current situation, for the benefit of readers, authors and publishers," he told the BBC.

"For titles where Amazon sets the price, we'll lower the prices of books not already on promotion."

The price reduction will also affect e-newspapers, although it is unclear whether their publishers will pass the reduction on to consumers.

News UK, which offers digital subscriptions for The Times, said prices would initially remain the same.

"This exemption, particularly when the industry is facing pressures from Covid-19, will help keep the current price as long as possible for the benefit of consumers and will keep the investment in high-quality journalism that customers rely on. our readers. "

The VAT cut does not apply to audiobooks, which the Royal National Institute of Blind People has called "disappointing".


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