Zero rating for   printed matter under threat

The VAT treatment of eBooks is understood to be challenged   soon using the EU principal of fiscal neutrality; eBooks are subject to VAT   whereas printed books are zero rated. As the European Commission has already   ruled that France and Luxembourg cannot apply a reduced rate of VAT to eBooks   and that they should be standard rated, it is unlikely that the challenge   will result in eBooks becoming zero-rated. Fiscal neutrality could lead to   zero-rating being withdrawn for hard copy books.