Iceland removes e-book VAT from 2019

30 April 2018

From 1 January 2019, Iceland’s Ministry of Finance and Economic Affairs will reclassify electronic books as zero-rated for Value Added Tax.

E-books are currently subject to the reduced VAT rate of 11% in Iceland, however as Iceland is not a member of the European Union (EU) they can decide their own VAT rates which has allowed them to scrap this VAT charge altogether.

EU countries do not have this privilege and are currently obliged to charge the full standard VAT rate on e-books, this is despite printed books of the same matter enjoying the right to a reduced or zero rate of VAT.

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