WRITTEN QUESTION No. 144/97 by Jaime VALDIVIELSO DE CUÉ to the Commission. Zero-rated VAT on newspapers
Date: 1997-01-24
Institutions: European Parliament, VALDIVIELSO DE CUE
Subjects: VAT rate, access to information, impact study, information network, information technology, new technology, pluralism in the media, press, press undertaking













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91997E0144

WRITTEN QUESTION No. 144/97 by Jaime VALDIVIELSO DE CUÉ to the Commission. Zero-rated VAT on newspapers  


Official Journal C 319 , 18/10/1997 P. 0029 





WRITTEN QUESTION P-0144/97 by Jaime Valdivielso de Cué (PPE) to the Commission (24 January 1997)Subject: Zero-rated VAT on newspapersIn view of the development of new technologies, and more specifically of the new information society, and of the distribution of information through new channels such as the Internet, has the Commission studied its possible impact on Europe's printed media?Could this ability to access press reports via the Internet aggravate the crisis facing the newspaper industry? Could it increase the risk to jobs in the sector?Bearing in mind the need for an independent press in order to inform public opinion, thus fulfilling an essential function of democratic control and public education, what strategic assistance can the Commission provide to deal with a process of change that will transform the industry?Will it draw up legislation as soon as possible to zero-rate VAT in a sensitive industry whose social purpose is beyond dispute?Answer given by Mr Monti on behalf of the Commission (1 April 1997)The Commission does not intend to introduce a zero-rate for VAT in the sector of the newspaper industry. At present, some Member States are entitled to apply a zero-rate to books, newspapers, and periodicals according to Article 28 (2) of the sixth VAT Directive (77/388/EEC ((OJ L 145, 13.6.1977. ))). This article is part of the transitional arrangements which will be subject to revision in the context of the new common VAT system.The Commission is mindful of the essential function of democratic control and public education that an independent press has to fulfil in modern society. It is noteworthy that most Member States currently favour books and newspapers mostly by applying a reduced VAT rate. This might suggest that some continuation of a reduced VAT rate under the new common system might be considered.The Commission observes very carefully the impact of new technologies and especially of channels like the Internet on the newspaper industry and on the printed media in general. Developments in this area will be thoroughly examined with a view to possible consequences on the VAT regime applicable. A key question will be to check whether or not printed media and electronic media directly compete and if there is really a perceptible impact on the respective position in markets.Taxing electronic media like the Internet would imply a number of technical tax questions which also need to be examined in detail. One of the most important issues in this context is control, which appears to be extremely difficult to establish in this area. The Commission is of the opinion that as long as VAT can be levied there is no reason either for renouncing VAT nor for introducing a new specific tax on electronic information technology like the so-called bit-tax.