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Sales of ebooks in the EEC have had VAT added when the purchaser is located in any of the 28 member states.

Due to corporate giants such as Amazon and Apple relocating to Luxembourg for tax haven purposes, the EEC (European Economic Community) has introduced a new to close loopholes. Unfortunately, this new tax law means more work for independent publishers selling to consumers in the EEC.

Sales of ebooks in the EEC have had VAT added when the purchaser is located in any of the 28 member states. Until early 2015 this VAT was added at the VAT rate applicable in the home country of the publisher or supplier, not the purchaser, causing several corporate giants to relocate in the recent past.

VAT in Luxembourg is 3 percent – significantly lower than most EEC countries which charge VAT at 20 per cent or more, allowing Amazon and other similar retailers to significantly undercut competition from independent retailers and physical shops in countries such as the UK. Since action has been taken to close this tax loophole, VAT is now charged at the rate applicable in the buyer’s location, not the suppliers.

In order to apply the correct tax rate for each product sold in each of the 28 member states, the home country of the purchaser must be known and recorded, and the sale must be reported to the appropriate tax authority. This suddenly puts a lot of pressure on retailers to ensure that their tax paperwork is completed in accordance with the new law; a system known as VAT MOSS (Mini One Stop Shop) has been implemented to simplify the process, letting publishers avoid having to register with all 28 tax authorities in the EEC member states.

Drumlin Security, a provider of PDF security in the UK, takes a keen interest in reports such as this. A spokesperson for the company provided the following statement: “Independent publishers are now having to deal with a world of new paperwork and tax laws thanks to the avoidance schemes of corporate entities around the EEC.

This new VAT MOSS system is a potential headache for independent publishers who don’t have the time or expertise to figure out the system, and if they get it wrong they are looking at dealing with 28 different taxmen at the same time – a horrifying notion for any of us.”

“Fortunately, there are management systems available to help independent publishers within the EEC. A managed service will leave the reporting and tax reconciliation to an independent company, meaning that publishers don’t have to worry about the new regulations coming back to haunt them if they get their paperwork wrong. If you’re an independent eBook or PDF publisher, it’s well worth looking into such a service.”

Drumlin Security provides secure PDF e-book and document distribution for individuals, corporates and publishing enterprises. The company focuses on deterring the copyright abuse of PDF file content. Using its own suite of software products and managed servers Drumlin Security includes protection against piracy, content copying, with date expiry and print controls, plus intelligent watermarking and centralised tracking of usage.

This press release was distributed by ResponseSource Press Release Wire on behalf of Drumlin Security in the following categories: Business & Finance, Computing & Telecoms, for more information visit