Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

Recommendation No. 24 relates to VAT rates applied to e-books and audio books. The current position is that the second reduced rate of VAT applies to e-books and audio books supplied in an electronic format, that is, 9%. Where an audio book is provided electronically, it is considered an electronic publication and, therefore, liable at the reduced rate, assuming it meets the criteria laid out in Irish legislation.

The supply of an audio book in physical form, such as on a CD, is liable for the standard rate of VAT. As Senators will be aware, Ireland has always applied a zero rate of VAT to printed books. However, until the amendment to annex 3 of the VAT directive earlier this year, it was not possible to reduce the rate of VAT applying to e-books or audio books to zero. It is also important to note that digital information services are not always a direct equivalent to traditional printed books, including actual books. Even where the content is similar, the additional functionality such as search facilities, hyperlinks, archives etc. associated with electronic content produces a fundamentally different product. However, while I cannot accept the recommendations from the Senator, I will ask that my officials consider the issue in next year's tax strategy group paper.