VAT on books
VAT on books in Luxembourg
Luxembourg has one of the lowest book rates in the EU, 3%. Printed books have paid it since 1992, and ebooks since 1 May 2019. The standard rate is 17%.
This is general information, not tax advice. Rates and rules change, and your own situation matters. Check with Luxembourg's VAT administration (AED) or an accountant before you decide.
The rates
| What you sell | Rate | Type | Source |
|---|---|---|---|
| Printed books | 3% | Super-reduced rate | AED, Circulaire 793 (2019) |
| EbooksSince 1 May 2019. | 3% | Super-reduced rate | AED, Circulaire 793 (2019) |
| Most other goods and services | 17% | Standard rate | Your Europe, VAT rates |
What to know about Luxembourg
- Printed books have had the 3% rate since 1 January 1992. Children's picture, drawing and colouring books, printed music and maps followed in 1993. AED Circulaire 793
- The 2019 budget law extended 3% to books on supports other than paper and to books supplied by download, from 1 May 2019. Library lending and paid subscriptions to qualifying books get 3% too. AED Circulaire 793
- Publications that are wholly or mainly advertising, video, music or pornographic content are left out. The circular mentions books recorded on optical disc but never uses the word audiobook, so the table leaves the audiobook rate out. AED Circulaire 793
How EU VAT works when a reader in Luxembourg 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 Luxembourg pays the rate for Luxembourg, 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 Luxembourg, 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 Luxembourg
What VAT do Luxembourg readers pay on ebooks?
3%, the same as printed books, since 1 May 2019.
Does an ebook subscription get 3% in Luxembourg?
Yes. The tax administration says paid subscriptions giving access to qualifying publications get the 3% rate.
Are audiobooks at 3%?
Probably, since only video and music are excluded and books recorded on disc are covered. But no official text names audiobooks, so check with the AED.