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EU takes France, Luxembourg to court over low VAT on e-books

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BRUSSELS (Reuters) – The European Commission is taking France and Luxembourg to court for applying reduced tax rates on the sale of electronic books, which the EU executive says breaks current EU rules. Since January 2012, France and Luxembourg have applied reduced value added tax (VAT) rates to the sale of e-books of 7 percent and 3 percent respectively. Under EU rules, governments can apply reduced VAT rates to a limited list of goods and services which includes books, but currently not e-books. . . .

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