More European governments have now slashed the rate of Value Added Tax (VAT) on ebooks following Germany’s tax reduction in December last year.
Austria have cut ebook VAT from 20% to 10%, the Netherlands have reduced their rate from 21% to 9%, and Slovenia’s ebook tax goes down from 22% to 5%.
All these changes are now effective. Amazon is encouraging indie authors to review their ebook prices to pass the savings on to customers in these countries.
Amazon does automatically change the amount of tax so there might not be much you can really do to adjust your prices. This is particularly the case as only the Netherlands out of the three countries mentioned here has a dedicated Kindle store (Amazon.nl). Austrian readers would probably be using the German store (Amazon.de) and Slovenian residents might well be on the Italian store (Amazon.it).
To lower your list price, go to your Bookshelf and choose the book you want to change and adjust the price accordingly.
In December last year, Germany cut back the tax charged on ebooks from 19% to 7% to make the rate the same level of tax charged on print books in Germany.
The UK is now virtually alone as the sole major nation in Europe to be charging an excessive tax rate on ebooks by keeping the rate at a whopping 20% despite pressure from the publishing industry. The tax rate on print books in the UK is zero.