The Federal Cabinet today approved the draft of the Annual Tax Act. It contains numerous amendments to various tax laws. Among other things, this law introduces the reduced VAT rate on digital newspapers, periodicals and e-books.
In Germany, the reduced VAT rate of seven percent applies to print and (printed) press products, whereas the full VAT rate of 19 percent previously applied to digital editions. This unequal treatment was prescribed by European law. Germany had long called for a change in this legal situation. The Council of the European Union cleared the way for the alignment at the end of last year.
Now it is not the form that matters, but the content, which strengthens cultural diversity but also technical development.
