Variable/exempt VAT on certain goods often leads to funny exploitation. In Poland we got a ton of media (games, movies, pr0n) sold as magazines/books to get 8% instead of 22% VAT. Here an example from CD Project (Witcher and Cyberpunk guys) https://gamerweb.pl/gry-z-serii-gamebook-w-sieci-sklepow-bie... Gamebook, a book bundled with "free" game :)
This is supposedly why the Playstation 2 came with a BASIC interpreter in Europe; they were attempting to have it classified as a computer (no import duties) rather than a games console (duties, at the time). I _think_ part of the motivation for Linux on the PS3 may have been something similar.
'Reading crisis' prompts Denmark to end 25% tax on books
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Re: 'Reading crisis' prompts Denmark to end 25% tax on books
#62The idea that you can convince a teenager who has grown up with the internet at their fingertips to buy books by reducing the price by 20% is laughable. And they won't read books provided at no cost either.
The 24% who cannot read well have simply been failed by the schools they attended and it is there that the politicians must look for the reasons and also the solutions.
Re: 'Reading crisis' prompts Denmark to end 25% tax on books
#63Earlier quoted context omitted.
The real problem is actually less the exact rate of 25%, but rather that most of the systems only assume one rate. Denmark was the first country to introduce a general VAT in 1967, and whilst the rate has changed (last in 1992 to 25%), the number of rates have not. So lowering the general VAT rate would likely be possible in a 1-3 year time frame (depending on unknown factors), but lowering the general VAT rate would…
> The real problem is actually less the exact rate of 25%, but rather that most of the systems only assume one rate. This can’t be the case. You have to apply the VAT of their own country to customer from other part of the union and some services are exempt. In all likelihood, most systems in Denmark already supports using different VAT for different products. Plus, most accounting systems won’t be Denmark specific a…