Legal challenge to HRMC could result in VAT being removed from ebooks

A leading law firm's legal challenge may result in the government having to scrap VAT on ebooks.

On behalf of an un-named client, City firm Berwin Leighton Paisner is challenging HM Revenue & Customs in a tribunal over its decision to apply VAT at the standard rate of 20% to ebooks. Print books are zero-rated for VAT.

BLP's argument is that the word 'book' in VAT legislation should refer to both physical books and ebooks.

If BLP's challenge is successful, it could well become a landmark case and the government may have to make ebooks zero-rated too.

Last week the EU ordered France and Luxembourg to charge standard VAT rates on ebooks instead of their previous reduced rates.

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