On 10 September 2016 the European Commission has confirmed that they are preparing a proposal for the application of reduced VAT rates on e-books. It is currently allowed to apply the reduced VAT rate solely on printed books.
Although some European member states already allowed companies to apply the reduced VAT rate, the European Court of Justice has dismissed the application of the reduced VAT rate on e-books.
The legislative proposal will be published in October 2016 and it is expected that the European member states will agree to the proposed changes. If everything goes well, the reduced VAT rate will be applicable for e-books as of 2017.
We will keep you informed about the developments.