Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

EU court bans France, Luxembourg e-book tax cuts

EU pledges 1 bn euros for Syria, Iraq fight against IS/AFP

EU court bans France, Luxembourg e-book tax cuts/AFP

LUXEMBOURG, Mar 5- France and Luxembourg must stop applying lower sales tax rates to electronic or e-books, the EU’s highest court ruled Thursday.

The European Commission, the EU’s executive arm, took legal action against the two countries in 2013 saying reduced rates could only apply to paper books.

France has levied a VAT (Value Added Tax) rate of 5.5 percent on e-book sales since January 2012 while Luxembourg’s is just 3.0 percent.

The EU says the full level should be 20 percent.

“The Court upholds the Commission’s action for failure to fulfil obligations,” the Luxembourg-based European Court of Justice said in a ruling.

“The (EU’s) VAT Directive excludes any possibility of a reduced VAT rate being applied to ‘electronically supplied services’,” it added.

Brussels had claimed that the low tax rates in France and Luxembourg distorted competition to the detriment of other member states in the 28-nation EU.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...