Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Senator Doherty. As she will be aware, this finance Bill provides for the application of the zero-rate of VAT to electronic books, or e-books, and audiobooks from 1 January 2024. There is no requirement in the amendment that an electronically supplied book or audiobook must have a printed equivalent to benefit from the zero-rate of VAT. A book or audiobook that is published only in digital or electronic format will also attract the zero-rate of VAT.

It should be noted that it was not possible to make this change prior to amendments made to Annex III of the VAT Directive in 2022. The estimated cost of this measure is €3 million.

As the measure restores a level of parity between physical books and their electronic and audio equivalent, I am satisfied that it was the appropriate decision to make and I believe it will meet the particular needs of a wide range of people who use such books. Therefore, I do not propose to prepare a report at this stage but we will consider the issue the Senator has raised and we will monitor the impact of this reduction in VAT once it comes into effect in the new year.