The precede also flags the «ebook - as - digital - service» problem in which some places tax ebooks at a higher
rate than print books as software - like services, «thus stunting the growth of the ebook market,» IPA writes, «especially in smaller language markets.
Later, GoodEReader.com reported on the taxation of ebooks in Germany in which ebooks are taxed at a higher
rate than print books as the... [Read more...]
E-book readers go back and buy more books at a higher
rate than print book buyers.
Not exact matches
But that's nothing compared to the head - scratching that the EU's highest court has caused when they upheld the ruling this week that ebooks were not
books, and therefore would be taxed at a higher VAT
rate than their
print counterparts.
So assuming those are pro
rates for getting your
book edited, covered, formatted, and distributed as ebook and
print on demand, the questions you should ask yourself is IF a publisher is asking for $ 800 up front from you are: — is the percentage they take of your work going to equal more
than that other $ 800?
Finally, once you factor in the wildly varying
rates of value added tax (VAT)- — which are typically much higher on e-
books (which are considered software)
than print books (which are not)- — then you have even more of an emerging quagmire.
Print sales have evened out in 2017 and unit sales of
books increased by a paltry 1.9 % last year, which is slightly less
than annual growth
rates of 3 % posted between 2013 to 2016.
GoodEReader.com reported earlier this year on the current state of disarray regarding ebook taxation internationally, specifically in Germany, where ebooks are taxed at more
than double the
rate of
printed books because they are classified as software downloads.
At the moment, member states have the option to tax
printed books, newspapers and publications at a reduced
rate (minimum 5 %) and some member states were granted the applications of VAT
rates lower
than 5 % (super-reduced
rates) including exemptions with a deductions right of VAT at the preceding stage (so called zero
rates) to certain
printed publications.
It demonstrates that at present royalty
rates, publishers benefit from higher margins on ebooks while authors receive less income
than on the sale of a
printed book.
Although sales of
print books are less profitable
than ebook sales, authors receive a much higher royalty
rate from
print (which may explain some of their pique at Amazon's tactics), and
print bookstores are an effective means of helping readers discover new
books.
Logue also pointed to a 2016 Pew Research Center study, which reported that 65 percent of Americans read a
print book in the previous year, more
than double the
rate for e-books and quadruple the
rate for audiobooks.