View all newsletters
Sign up for our free email newsletters

Fighting for quality news media in the digital age.

  1. News
October 5, 2018updated 30 Sep 2022 6:54am

EU finance ministers back VAT reduction for electronic publications which NMA says will save news industry ‘millions’

By Freddy Mayhew

European Union finance ministers have agreed a proposal allowing member states to reduce VAT rates on electronic publications, bringing them in line with tax rules on print.

In the UK, printed newspapers, journals and magazines are zero-rated for value-added tax. However, digital versions of these publications are currently subject to standard-rate VAT of 20 per cent.

The new ruling from the Economic and Financial Affairs Council permits “super-reduced” VAT rates (below 5 per cent) or zero rates in countries where this is already applied to printed publications.

It means member states can apply the same VAT rate for online content as printed content.

Already the News Media Association, which represents national, regional and local press in the UK, has called for the Government to apply a zero VAT rating for electronic publications “as soon as possible”.

The NMA says the move will save the news media industry “millions annually”.

NMA chairman David Dinsmore said: “Online news content faces tough competition from social media platforms and freely available news outlets.

“By harmonising the tax treatment of digital and print publications, the EU has recognised the significant digital transformation of the online news media landscape which reaches bigger audiences than ever before.

“We welcome the amendments to the directive for a fairer tax regime which will benefit consumers and provide a stimulus for more investment into quality content creation.”

The decision, made on Tuesday this week, has also been welcomed by European publishers.

The European Magazine Media Association and the European Newspaper Publishers’ Association, together representing more than 20,000 publishers across Europe, said it “reflects how newspapers and magazines are consumed in today’s digital environment and acknowledges the important role publishers play in a democracy”.

Fernando de Yarza, president of News Media Europe, which represents more than 2,200 European news brands, said European leaders had “recognised the need to modernise the VAT framework in light of the ongoing digitisation of Europe’s news media industry”.

Picture: Economic and Financial Affairs Council

Topics in this article :

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog

Select and enter your email address Weekly insight into the big strategic issues affecting the future of the news industry. Essential reading for media leaders every Thursday. Your morning brew of news about the world of news from Press Gazette and elsewhere in the media. Sent at around 10am UK time. Our weekly dose of strategic insight about the future of news media aimed at US readers. A fortnightly update from the front-line of news and advertising. Aimed at marketers and those involved in the advertising industry.
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy Policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network