I saw the following statement on the web site of a British publisher
about subscriptions to access the archive of its e-journals.
"All EU subscribers, with the exception of UK subscribers, are exempt
from Value Added Tax (VAT) if they provide their VAT/TVA/Mwst, etc.
number when placing an order. EU subscribers outside the UK not
providing their VAT/TVA/Mwst, etc. number will be subject to VAT at the
prevailing UK rate."
Presumably this is because subscribers are expected to make arrangements
in their own country to pay VAT, as we do with e-journal payments on
invoices originating from outside the UK.
I was therefore a little puzzled to read the following in the
Government's response to the Science and Technology Select Committee
report on the question of VAT on electronic publications.
"The current rules for determining in which Member State VAT is due on
digital publications, and their mode of delivery also makes them
inappropriate for inclusion in the list of permitted reduced rates. This
is because the VAT is paid to the Member State where the publisher is
legally established rather than where they are purchased."
http://www.publications.parliament.uk/pa/cm200304/cmselect/cmsctech/1200/120006.htm#a1
[Government response to Select Committee recommendations 29 & 30]
Does this mean that the HM Customs and Excise is collecting VAT at the
rate determined by the UK Government to be passsed on to the Dutch or
German government for accessing e-journals from publishers based in
these EU countries? How about publishers outside the EU?
The statement that "the VAT is paid to the Member State where the
publisher is legally established rather than where they are purchased"
seems to be at a variance with my understanding of how VAT operates, or
am I missing something completely? Or perhaps e-journal publishers keep
offices in all EU countries for VAT purposes?
Mieko
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Mieko Yamaguchi [log in to unmask]
Technical Services Manager/System Coordinator +44 (0)1248 382970
Main Library, University of Wales Bangor, UK +44 (0)1248 382979 (Fax)
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