How EU VAT changes affect eBook pricing

I received an email from Kindle Direct Publishing last week, with regards to the new eBook pricing system which will be introduced from 1 January 2015.

ebook_transition_ebook-x-com-hello-worldThe gist of it is that VAT will be included in the sale price of eBooks from 1 January, which will affect the minimum price at which those books can be sold. I’ll share the important bits here, but if you want to know more then please ask and I’ll happily show the entire email.

On January 1, 2015, European Union (EU) tax laws regarding the taxation of digital products (including eBooks) will change: previously, Value Added Tax (VAT) was applied based on the seller’s country – as of January 1st, VAT will be applied based on the buyer’s country. As a result, starting on January 1st, KDP authors must set list prices to be inclusive of VAT. We will also make a one-time adjustment for existing books published through KDP to move from VAT-exclusive list prices to list prices which include VAT. We’ll put these changes into effect starting January 1st; you may always change your prices at any time, but you do not need to take any action unless you wish to do so.

One-time Adjustment for Existing KDP Titles
Starting January 1st, for any titles already published in KDP, we will make a one-time adjustment to convert VAT-exclusive list prices provided to us to VAT-inclusive list prices. Subject to minimum and maximum thresholds, we will add the applicable VAT based on the primary country of the marketplace to the VAT-exclusive list price provided. For example, if an author had previously set £5.00 as the VAT-exclusive list price for, the new VAT-inclusive list price will be £6.00 because the applicable VAT rate in the UK is 20%. Please note, if an author had set a consistent VAT-exclusive list price for all Euro based Kindle stores, those prices will now be different due to varying VAT rates for the primary country of each Kindle store. For example, if an author had previously provided a €6.00 VAT-exclusive list price for,,, and Kindle stores, the list prices including VAT will be €7.14 (19% VAT), €6.33 (5.5% VAT), €7.26 (21% VAT), and €7.32 (22% VAT) respectively.

Minimum and maximum list prices for the 35% and 70% royalty plans will now also include VAT.
Learn more about the new minimum and maximum KDP EU list prices here

You currently have one or more books in the 35% royalty plan that will not meet the new minimum list price requirements. To make sure that your books still meet the minimum list price required for the 35% royalty plan after January 1, we’ll adjust the new list price that includes VAT in order to meet the minimum for 35% royalty.

  • For ebooks less than or equal to 3 megabytes, the new minimum list price requirements are £ 0.99 and € 0.99
  • For ebooks between 3 and 10 megabytes, the new minimum list price requirements are £ 1.49 and € 1.99
  • For ebooks equal to or greater than 10 megabytes, the new minimum list price requirements are £ 1.99 and € 2.99

VAT-300x199_accountancy-edge-co-uk-tag-vatWhat this means is that the digital version of all three books in the ‘New Beginnings‘ series will be increased in price from 1 January, and there’s nothing I can do about it.

If you’ve been thinking of reading one or all of them, I suggest you treat yourself before the end of December! 😉


eBook image courtesy of ebook extreme
VAT image courtesy of accountancy edge


About johannanield

Welsh author of a contemporary British romance trilogy
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2 Responses to How EU VAT changes affect eBook pricing

  1. Thanks for sharing… I’ll definitely give myself a treat before it’s too late!
    I’ve enjoyed many of your posts here and look forward to reading your next! 🙂
    Feel free to check out my writing about publishing:

    Liked by 1 person

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