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What Are ebooks vat classification?
AI accountant’s answer:
Ebooks fall under the category of digital or electronic services, and they are subject to Value Added Tax (VAT) in many countries. VAT rates and rules for ebooks can vary depending on the country. In the European Union (EU), for example, VAT on ebooks is generally subject to the standard VAT rate of a specific country, while some countries might apply reduced rates or exemptions. When it comes to U.S. sales tax, it is important to note that each state has its own rules for taxing digital goods, which includes ebooks. In some states, ebooks are subject to sales tax at the state's standard rate, while in others, they may be tax-exempt or subject to a lower rate. Keep in mind that tax laws can change, and it's essential to stay updated with the current VAT or sales tax classifications and rates in the countries or states where you sell your ebooks.
Comment from reviewer
Judah Broussard, EA, JD

In most EU countries since 2021, e-books are now subject to the reduced VAT rate or are exempt from VAT altogether (not subject to standard VAT rate).  This is now in alignment with the treatment of printed books.

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