Many digital publications threaten to remain under a high VAT rate. The announced VAT reduction for digital publications from 21 to 9 percent will apply almost exclusively to digital copies of paper newspapers, books and magazines. Unlike other member states, the Netherlands keeps current digital publications such as news websites outside the reduced VAT rate. This appears from the bill of the Ministry of Finance. The Media Federation, in which five branch organizations from the publishing sector are united, has today called for an amendment to the bill. The proposed measure continues to hamper innovation.
Unlike other member states, the Netherlands chooses to test digital publications for their form. Because, according to the Ministry, a digital publication such as a news website in its form does not resemble a newspaper that appears once a day, the 21% rate applies to news websites. Other EU member states opt for a more future-proof solution, which means that news sites, for example, fall under the reduced VAT rate.
Source: accountantweek.nl (Dutch)
