VAT on books
VAT on books in Cyprus
Cyprus taxes books at a super-reduced 3%, on paper or supplied electronically. The standard rate is 19%. Audiobooks are less clear. The law names talking books for people with disabilities at 3%, but not audiobooks in general.
This is general information, not tax advice. Rates and rules change, and your own situation matters. Check with the tax authority or an accountant before you decide.
The rates
| What you sell | Rate | Type | Source |
|---|---|---|---|
| Printed books | 3% | Super-reduced rate | European Commission, Taxes in Europe Database |
| EbooksThe law covers books on physical support, electronically or both. | 3% | Super-reduced rate | European Commission, Taxes in Europe Database |
| Most other goods and services | 19% | Standard rate | European Commission, Taxes in Europe Database |
What to know about Cyprus
- Cyprus reports books at a 3% super-reduced rate, and audio books for people with disabilities at the same rate. European Commission, TEDB
- Cyprus covers books under customs headings 49.01 to 49.05, the same headings used for printed books, newspapers and maps. Newspapers and periodicals also pay 3%. European Commission, TEDB
- Because only talking books for people with disabilities are named, a general audiobook download may not get 3%. The table leaves the audiobook rate out.
How EU VAT works when a reader in Cyprus buys from you
Ebooks and audiobooks: the reader’s country
A download sold to a reader, not a business, is taxed where the reader lives. So a reader in Cyprus pays the rate for Cyprus, wherever you are. European Commission, place of taxation.
The €10,000 threshold
If your business is based in just one EU country, and your sales to readers in other EU countries stay at or under €10,000 a year (this year and last), you can charge your own country’s VAT instead. Digital sales and shipped print books count together. Sellers based outside the EU get no threshold for digital sales: VAT is due from the first sale. Commission OSS guide.
The One-Stop Shop (OSS)
Instead of registering in every country, you register once and file one return every quarter that covers all your EU sales. Your home tax office passes the VAT on to each country. EU-based sellers use the Union scheme. Sellers outside the EU use the non-Union scheme for ebooks and audiobooks. EU One-Stop Shop. OSS in plain words.
Paperbacks and hardcovers sent across a border
A printed book shipped from one EU country to a reader in another is a distance sale. It falls under the same €10,000 threshold. Over it, the rate is the one where the parcel ends up, here the rate for printed books in Cyprus, and it goes on the same OSS return. Commission OSS guide.
Who charges the VAT when you sell on Lanternbee
You do. Each author connects their own Stripe account, so you are the seller and the money goes straight to you. At checkout, Stripe Tax works out the right rate for where the reader is and adds it to the order. It collects tax in the places where you have added a tax registration in Stripe, so you still register where you need to, file the returns and pay what you collected. Stripe on tax registrations.
We plan to take EU VAT on ebooks off your hands by acting as the merchant of record for digital editions. That is planned, not live. Today, you are the seller.
Questions authors ask about Cyprus
What VAT do Cypriot readers pay on ebooks?
3%, the same as printed books.
Are audiobooks at 3% in Cyprus?
Only talking books for people with disabilities are named at 3%. For other audiobooks we found no official answer, and they may pay 19%. Check with the Tax Department.
Is 3% the lowest VAT rate on books in the EU?
Not quite. Cyprus and Luxembourg both use 3% for books, while Ireland and Czechia charge 0%. Denmark is at the other end, at 25%.