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SYRIZA amendment for inclusion of cultural goods and the press in the zero VAT rate

SYRIZA proposes the inclusion of cultural goods and the press at a zero VAT rate with an amendment tabled by MPs Sia Anagnostopoulou, Marios Katsis, Anastasia Gara and Panagiotis Skouroliakos. MEPs recall that with the decision of the Economic and Financial Affairs Council of Europe (ECOFIN) of 7/12/2021 and the relevant Proposal for a Council Directive of the EU amending Directive 2006/112 / EC and subsequently Directive 2022 / 542 (published on 5 April 2022 in the Official Journal of the EU) allows Member States to apply a reduced VAT rate, below the 5% threshold, as well as an exemption from the right to deduct input VAT on seven goods and services of their choice, covering basic needs such as food, water, pharmaceuticals, hygiene products, transportation of persons and certain cultural goods (books, newspapers and magazines).

“The energy crisis, generalized precision in raw materials, etc. has skyrocketed the cost of printing books, magazines, newspapers and other publications, further affecting the publishing and press space, where sales are constantly declining. The prolonged pandemic crisis “It has exacerbated the financial problems of the press and publishing houses, bookstores, with the result that most companies in the sector are facing serious survival problems and thousands of employees are in precarious status,” the four deputies said. As for the paper and the production of the books, they note that the VAT is at 24% while their sale is at 6%, with the result that a significant part of the liquidity is trapped in a credit VAT that is delayed to be repaid. In many cases, in fact, publishers resort to the solution of becoming buyers of their books by printers, which is insufficient and leads to distortions.

It is necessary to strengthen the liquidity in the field of publishing in a budget-neutral way, the deputies state and note that it is a constant request of the publishers-bookstores to assimilate the VAT in the stages of production and sale of the book. They also emphasize the need for immediate universal action to horizontally boost book publishing, as well as the press, in terms of transparency and efficiency.

The amendment tabled by SYRIZA provides the following:

“Added to No. 21 of Law 2859/2000 (as in force)” Value Added Tax Code (VAT) “paragraph 1B as follows:

1B. The following cultural goods are subject to a zero VAT rate: Books and picture books for children. Newspapers and periodicals printed, whether illustrated or with advertisements. Music handwritten or printed, illustrated or not even knit. Paper for the production-printing of the above or other cultural goods.

With regard to GOODS AND SERVICES SUBJECT TO A REDUCED RATE (paragraph 1 of Article 21) / ANNEX III it applies that:

Α. ΑΓΑΘΑ

40. Books and books for children (Δ.Κ. ΕΧ4901, ΕΧ4903), editions thereof, visual or audio, recorded on a material backing of Δ.Κ. ΕΧ8523 and Δ.Κ. ΕΧ8543 and in devices of D.K. ΕΧ8519. Newspapers and periodicals printed, whether illustrated or with advertisements (D.K. 4902). Music handwritten or printed, illustrated or not even knit (D.K. 4904). The tax rate for the goods hereof is set at zero percent (0%) “.

Source: AMPE

Source: Capital

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