The Bookseller.com

2nd December 2008

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EU ready to slash VAT on audiobooks

07.07.08 John Ryan

Audiobooks are set to come down in price following a proposed EU directive that will reduce the rate of VAT charged on them. Currently 25 of the EU's 27 member states tax books at zero or reduced VAT rates with the objective of encouraging reading, education and culture, but audiobooks are excluded from this.

The move to bring audiobooks into the reduced tariff fold marks a recognition of the increasing importance of the category; in Sweden, audiobooks now account for almost 10% of the market, according to the Federation of European Publishers.

Following the announcement, Federico Motta, president of the Federation of European Publishers, said: "We are very pleased that member states might now consider audiobooks as eligible for reduced rates. We hope that in due time, the EC will acknowledge new forms of delivering books, that is via digital platforms, are having the same end result as physical books. Books are mirrors of our cultures."

An FEP spokeswoman said that the proposal has until 31st December 2010 to be ratified, but that the commission would not be pursuing Sweden, where audiobooks are already being sold, illegally, at the reduced VAT rate of 6%.

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