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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...

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