Magazines Ireland publishers applauded the outcome of today’s Economic and Financial Affairs Council (Ecofin) which saw the adoption of the proposal to amend the existing EU VAT directive to allow Member States to align their digital VAT rates to their print rates.
“The decision to allow lower rates to be applied to electronically supplied publications removes a major obstacle to the further development of the digital press market,” said Grace Aungier, CEO, Magazines Ireland.
“It will encourage publishers to continue the high investment in quality content whilst being able to invest in digital technologies”.
The group which promotes and protects the interests of magazine publishers in Ireland highlighted that the current VAT Directive (2006/112) regime only allows for reduced-rates to be applied to printed versions of magazines and newspapers at EU level.
Aungier continued, “Magazines Ireland has always believed that the application of VAT should be platform neutral and rates applied to printed magazines should apply equally to digital editions”.
Ciaran Casey, Chairman, Magazines Ireland, said that the outcome of this vote is an essential step towards guaranteeing media pluralism and establishing a basis for freedom of opinion and democracy in the digital world.
“It underlines press freedom as one of the fundamental values of our European democratic societies and will have a critical impact on our sector’s sustainability,” said Casey.
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.