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Earlier this year, Amazon.com announced that e-books had eclipsed the sales of paperbacks, with 115 Kindle books sold for every 100 print versions, signalling a dramatic change in the worldwide publishing industry. In March last year, the Geneva-based International Publishers Association (IPA) launched its first annual global survey on VAT on books and e-publications. It is now releasing an updated version with 88 countries surveyed. In a global context where standard VAT rates increasing, special treatment for books remains the norm. As far as e-publications are concerned, a small number of countries have already adopted a real non-discriminatory, consistent tax regime. The study concludes that Korea, which boasts the world's 8th largest publishing industry, should serve as a model in this respect. The first edition of the global survey had showed just how dominant special rates for books were around the world with reduced VAT rates for publications the norm, not the exception. This second edition shows that globally, particularly in Europe, standard VAT rates are on the rise. However, special rates for books are still dominant worldwide.

As far as e-publications are concerned, specific regulations of VAT/GST/Sales Tax are gaining ground. There is a clear trend towards inclusion of e-books in special VAT/GST regimes. Yet, much progress remains to be made for countries to adopt a real non-discriminatory, consistent tax regime for paper and e-publications. Korea, which boasts the world's 8th largest publishing industry, should serve as a model in this respect.

According to IPA Secretary General Jens Bammel: "Lower VAT rates for publishers are justified because they help publishers and bookshops offer more diverse and better books at affordable prices. It is a proven and effective tool to promote literacy and encourage reading. Lower VAT rates on books help secure a stronger national publishing industry with more employment, supporting local bookshops, and small and medium-sized publishing companies". He added that "e-books are of growing importance to readers, and publishers. They should also become an issue for VAT regulators. The consistent, strong global support for reduced VAT rates on books on paper must now be expanded to e-books."

Click here for the IPA Survey.

The International Publishers Association (IPA) is the global non-governmental organisation representing all aspects of book and journal publishing worldwide. Established in 1896, IPA's mission is to promote and protect publishing and to raise awareness for publishing as a force for cultural and political advancement worldwide. IPA is an industry association with a human rights mandate. IPA currently has 65 member associations in 53 countries. IPA is a trade association with a human rights mandate.

Contact:
Alexis Krikorian
International Publishers Association
3, avenue de Miremont
CH - 1206 Geneva
Tel: +41 22 704 1820
Fax: +41 22 704 1821
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www.internationalpublishers.org