Follow us on
Connect

Posts tagged sales tax

Amazon issues EU VAT guidelines for KDP authors
December 2, 2014 | 10:24 am

KDPFollowing the introduction of the European Union's new VAT-MOSS regime, as reported by Chris Meadows, Amazon has now issued details on the implementation of VAT collection for Kindle Direct Publishing, and KDP authors like me have received a lengthy email from the Kindle Direct Publishing Team covering the new regulations. It begins as follows: Hello, On January 1, 2015, European Union (EU) tax laws regarding the taxation of digital products (including eBooks) will change: previously, Value Added Tax (VAT) was applied based on the seller’s country – as of January 1st, VAT will be applied based on the buyer’s country. As a...

Nando’s, Amazon, and tax: Who’s the real chicken?
July 11, 2014 | 11:25 am

In the wake of UK children's writer Allan Ahlberg's refusal of the Amazon-sponsored inaugural Booktrust Lifetime Achievement Award - over Amazon's tax avoidance policies and other issues including the Hachette standoff - The Guardian has been probing into similar tax efficiency schemes, highlighting, of all players, Nando's the Portuguese style chicken chain. According to The Guardian, Nando's not only uses a secretive Channel Islands trust to avoid heavy inheritance tax on the owners of the privately-held group, but also "uses a battery of offshore techniques, including companies in Malta, Guernsey and the Netherlands, to legally reduce its UK corporation tax...

UK budget means new ebook tax rates?
March 25, 2014 | 10:25 am

[caption id="" align="alignright" width="276"] He wants a cut of your ebooks.[/caption] For non-British readers, the ritual of UK budget day, when the Chancellor of the Exchequer holds up a red dispatch box with the country's financial future in it, may seem as quaint a part of national pageantry as beefeaters or the Changing of the Guard. But this year, budget day may have some more serious implications for ebook readers, and ebook publishers and distributors like Amazon, as Chancellor George Osborne brings in new tax regulations relating to digital services (which includes ebooks) in the UK. According to the government's budget materials,...

Amazon begins collecting sales tax in Indiana, Nevada, and Tennessee
January 1, 2014 | 7:16 pm

Here’s some Amazon news that hits me literally right where I live. Today Amazon began charging sales tax on orders shipped to Indiana—where I currently live—as well as Nevada and Tennessee. I can see why the states want to get their hands on the extra money, and technically we should be paying sales tax or use tax on everything we purchase, no matter where we buy it, but it’s still annoying to see all my Amazon prices effectively rise by 7%. I was talking about it with my brother, and he pointed out that the funny thing is that...

UK Booksellers Association CEO sends curious Xmas card
December 19, 2013 | 2:13 pm

As reported in The Bookseller, UK Booksellers Association CEO Tim Godfray has circulated a rather interesting Christmas message to members, highlighting some key priorities for the BA that appear, on reflection, a little odd - when set against those members' actual interests. Godfray sets out to stand up to European Commission pressure to increase VAT on books. "We have to ensure that nothing is done to change the current VAT arrangements for printed books in the UK and Ireland in 2014," The Bookseller quotes him as saying. But the EC seems more concerned with pushing countries like Luxembourg and France into...

Italy targets 19 percent book tax rebate to promote culture
December 18, 2013 | 2:15 pm

italyAs reported by Italian press agency Agenzia Giornalistica Italia (AGI), the Italian government is planning a 19 percent tax rebate for book buyers, up to a maximum annual limit of EUR 2000 ($2746). As part of the package of measures entitled "Destination Italy,"  the plan, just approved by the Council of Ministers and announced by Premier Enrico Letta last Friday, is designed "to promote greater dissemination of reading physical books," and applies to all books with a "user ISBN." The Destination Italy package is designed to encourage inward investment and foreign business activity in Italy. "Destinazione Italia is the expression of...

Supreme Court rejects Amazon appeal; New York affiliate program sales tax law stands
December 2, 2013 | 4:14 pm

A few years ago, states started passing laws requiring Amazon to pay sales tax if it offered affiliate marketing programs in their state, rather than only being required to pay them if it had physical facilities there. This resulted in Amazon cutting off its affiliate programs in any state that passed such a law (such as my former home, Missouri). Amazon finally fought New York’s law to the Supreme Court—and the Supreme Court declined to hear the appeal, meaning that the appeals court decision affirming the law will stand. Amazon has been pushing for the “Marketplace Fairness Act,” which...

Use Tax on Missouri ballots today could affect large Amazon purchases
November 5, 2013 | 8:09 pm

CAM00068I was out and about doing various things today, and over the course of those things, I voted. There was only one issue on the ballot in my county: a 1.25% Use Tax, applying sales tax to out-of-state purchases. In other words, making sure that people who buy from Amazon and their ilk have to pay their share to the county. Except that the way the law is written, it doesn’t seem to apply to Amazon purchases so much at all, or at least the small ones. Theoretically, everyone is supposed to pay the tax. However, the only people...

Amazon discontinues associate referral program in Missouri
August 15, 2013 | 2:02 am

amazon-frownSometimes the news happens to you when you least expect it. I drove up from Springfield, Missouri to my brother’s house in St. Charles, on the way to GenCon in Indianapolis. As I was rolling through Rolla, I pulled off into a parking lot to check my email via convenient hotel wifi and found this missive waiting for me: Greetings from the Amazon Associates Program. We are writing from the Amazon Associates Program to notify you that your Associates account will be closed and your Amazon Services LLC Associates Program Operating Agreement will...

Amazon also catches flak in Germany
July 19, 2013 | 10:14 am

AmazonUK and France are not the only European countries to indulge in a spot of gratuitous Amazon-bashing. Now Germany is seeing the same trend, with Reuters reporting "outraged" complaints by Sven Giegold, German Green Party Euro MP, at Amazon's low German tax bill despite its huge sales there. Figures in the Reuters report show Amazon declaring €10 million of profits and paying only €3 million in income tax in 2012, despite actual German sales of $8.7 billion. This was done by channeling the sales through Luxembourg-registered Amazon Europe Holding Technologies, which as a tax-exempt partnership, does not have to pay income...

Sales taxes for ebooks? Issue is heating up
July 17, 2012 | 9:15 am

Images From an article in Smartmoney: Those who order “Fifty Shades of Grey” in paperback generally pay sales tax, but in most of the country the e-book version is tax free. That may soon change. Republican governors are gradually easing their longtime opposition to sales taxes on online purchases, The Wall Street Journal reported Monday. This will push up the price for the wide variety of tangible goods sold on sites like Amazon.com. (Amazon did not respond to requests for comment.) Most Americans who read books on their Kindles, Nooks and iPads have been exempt from taxes, but getting a piece of such sales may...

European Commission investigates France, Luxembourg for illegally lowering VAT on e-books
July 5, 2012 | 9:15 pm

Remember how Amazon has based its European operations in Luxembourg due to that country’s lower value-added tax rate on e-books? And France has reduced its own rate? Today the European Commission served notice that it was launching an investigation into whether these countries had broken European Union law by reducing those rates. The first step involves sending the governments of those countries a letter asking them to explain themselves, and if they don’t provide a satisfactory explanation within one month the European Commission could ask them to change their laws, or launch "infringement procedures”. As Philip...

UK Publishers Association lobbies for e-book VAT reduction
April 26, 2012 | 11:18 pm

In December, I mentioned the UK Parliament considering and then declining to lower the UK’s 20% value-added tax (VAT) on e-books. Lowering the VAT is technically against EU law, though that hasn’t stopped countries such as France and Luxembourg from doing it. Publishing Perspectives reports that the UK’s Publishers Association hasn’t given up, and is lobbying the European Commission to change its VAT rules so that audiobooks and e-books can be assigned the same (0%) VAT as printed books. While [Publishers Association CEO Richard Mollet] says that “considering the explosion of e-books across the...

Books a Million refuses to carry Amazon-published titles; Amazon may open brick and mortar stores
February 4, 2012 | 12:29 am

PaidContent reports that the US’s second-largest bookstore chain, Books a Million, is following in the footsteps of Barnes & Noble and proclaiming it will not stock Amazon-published titles in its brick-and-mortar stores. It’s not clear whether, like Barnes & Noble, they will sell the titles online. Books a Million sells a version of the Nook as its own e-reader. There’s a Books a Million store in Joplin, Missouri, and I stopped by it a few months ago. I wasn’t particularly impressed. Unlike Barnes & Noble, the store does not offer free wifi for its customers—you have to pay for...

UK declines to lower VAT on e-books, gives Amazon big advantage in UK e-book sales
December 23, 2011 | 2:59 pm

After the matter came up in Parliament last week, the UK has once again declined to lower the value-added tax on e-books, which currently stands at 20%. The Bookseller reports David Gauke, the UK’s exchequer secretary, said the UK could not do this and remain in compliance with European Union law, which classes electronic media as services rather than goods and requires they be taxed at the higher rate. Other European countries, including France and Luxembourg, have reduced their own VATs on e-books significantly. France has told its publishers it will pay any fines the EU imposes on them for flouting...

Parliament looks into UK’s 20% VAT rate on e-books
December 16, 2011 | 5:15 pm

FutureBook’s Philip Jones has a piece looking at the problems of value-added tax (VAT) on e-books in Europe. The fundamental problem is that, in the UK, e-books are charged the highest possible VAT rate, 20%, while print books have been exempt from VAT for decades. Other parts of Europe are in similar situations. This has the effect of inflating the price of e-books and slowing down their adoption compared to paper. When Parliament member Tom Blenkinsop asked the UK Chancellor of the Exchequer about reducing or eliminating VAT for e-books, the Chancellor said, essentially, that under EU agreements...

New California sales tax law will usher in in-state Amazon facilities
September 24, 2011 | 2:06 am

If you live in California, your days of being able to order from Amazon without paying sales tax are numbered. California Governor Jerry Brown just signed into law a bill requiring Amazon and a number of other on-line retailers to collect and pay sales tax on purchases made by Californians, even if they do not have physical facilities within the state. The tax takes effect as of September 15, 2012 and will, of course, include sales tax on e-books. A funny thing is, this means that Amazon’s physical service to California residents could actually improve considerably as the company bites the...

wordpress analytics