The French government is about to propose a VAT reduction for digital newspapers and magazines. The intention behind this move is to provide a level playing field for different forms of publication.
The government wants to give the digital versions the same tax advantage as it has already given to e-books. In January 2012, the French VAT rate on digital books was reduced from 19.6% (the pre 2014 French VAT rate) to 7%. French e-books were then moved to the 5.5% rate at the start of 2014 when the 7% VAT French rate was abolished.
Last year, the European Commission filed court proceedings against both France and Luxembourg for their use of the reduced VAT rates on e-books. The application of EU directives in this area is still subject to some discussion.
