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Apps And Ebooks Hit By VAT Hik...

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Apps And Ebooks Hit By VAT Hike

98FM
98FM

04:53 5 Jan 2015


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It's just got more expensive to download mobile apps and ebooks.

A new EU rule means downloaders here must be charged Ireland's 23% VAT rate.

The new directive means that VAT on digital goods will now apply at the rate in the customer's home country rather than the rate in the country where the retailer is based.

Until now, sellers could charge customers a lower tax rate from the country the app or book was created in.

Dermot Donegan, Head of VAT policy and legislation at the Revenue Commissioners, said: "in most member states the VAT rate on books is 0%, while in Ireland VAT rate on ebooks will now be charged at 23%."

 

 


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