Around the Net
Amazon Pays 3%, Charges 20% VAT On EBook Sales
- The Drum, Monday, October 22, 2012 4:41 PM
Amazon is making British publishers pay 20% VAT on ebook sales, despite paying only 3% on thier own tax bill. Companies such as Amazon collect the VAT levy from consumers before passing it on to governments. According to the Guardian, as the retailer has been based in Luxembourg since 2006 it only has to pass on 3% VAT to the Luxembourg government for ebook sales as opposed to the rate of 20% if it were based in the UK.
