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Amazon is forcing British publishers to cover the cost o... on ebook sales – even though the true VAT cost to the ... only a fraction of that amount under its generous Luxemb... regime.
The firm is able to wield such power over publishers bec ...

Amazon makes UK publishers pay 20% VAT on ebook sales | Books | The Guardian
http://www.guardian.co.uk/technology/2.../amazon-forces-publishers-pay-vat-ebook

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Amazon is forcing British publishers to cover the cost of a 20% VAT charge on ebook sales – even though the true VAT cost to the online retailer is only a fraction of that amount under its generous Luxembourg-based tax regime.

The firm is able to wield such power over publishers because it has a near monopoly of the UK digital book publishing market. According to reliable estimates, it sells nine out of 10 ebooks in the UK, while using its Luxembourg tax status to wring more profitable terms from publishers.

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<p>Amazon is forcing British publishers to cover the cost of a 20% VAT charge on ebook sales &#x2013; even though the true VAT cost to the online retailer is only a fraction of that amount under its generous Luxembourg-based tax regime.</p><p>The firm is able to wield such power over publishers because it has a near monopoly of the UK digital book <a href="http://www.guardian.co.uk/books/publishing" title="More from guardian.co.uk on Publishing">publishing</a> market. According to reliable estimates, it sells nine out of 10 <a href="http://www.guardian.co.uk/books/ebooks" title="More from guardian.co.uk on Ebooks">ebooks</a> in the UK, while using its Luxembourg tax status to wring more profitable terms from publishers.</p>

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