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FEP EXECUTIVE COMMITTEE
12th March 2009


Resolution unanimously adopted


The Federation of European Publishers (FEP) represents 26 national associations of book publishers of the European Union and of the European Economic Area and acts on behalf of its members in discussions and negotiations with the Institutions of the European Union particularly concerning legislation, regulation and taxation.

Meeting for their Executive Committee the 12th March 2009, FEP and its Member Associations (see list below) were made aware that, notwithstanding the increase of VAT rates from 5 to 9 % as of 1st January 2009, the Lithuanian government intends to further increase the rates to 19 % in July. We unanimously therefore call for a reconsidering of this idea. Books should be applied the lowest VAT rate possible. This has been recognised by the political agreement reached this 10th March by ECOFIN Ministers on reduced rates of VAT.

This decision is based on the reasons mentioned below underlying the application of reduced rates of VAT on publications including books in 24 of the 27 Member States of the EU. When including books and other publications in Annex III of the 2006/112/EC Directive, the European Union was consistent with the social, educational and cultural purposes which this derogation is intended to fulfil.

The Lisbon Strategy aims at boosting the EU’s competitiveness and employment through transition to a dynamic, knowledge-based economy with enhanced investments in education and training. A high rate of VAT on books, essential tools for education and the diffusion of knowledge, would go in the opposite direction: hampering the book market by increasing prices and thus reducing cultural and educational consumption crucial to the development of the Knowledge Economy.

At the time when Vilnius is receiving a well deserved attention for being the European Capital of Culture, the planned changes in taxation would be a contradiction, with very negative effects not only on the publishing industry but also on readership, and with it on the growth of knowledge and culture, which should not fall victim to budget considerations that would have little positive effects in the short run and definitely strong negative ones in the long run.

Though government initiatives in support of the publishing sector and of cultural projects are certainly welcome, any shift towards a State-funded publishing sector, through subsidies or similar instruments, would definitely endanger freedom of expression. It took centuries to set publishing and culture mostly free from the control of governments, and we don’t think it should go back; VAT in this respect is a less intrusive instrument than many others.

We also call once again for avoiding raising taxes on copyright contracts and changing copyright laws in a way that would surely be detrimental to the Lithuanian publishing industry.



In application of article 151.4 of the Treaty of the EU, any policy should take into account cultural aspects. Therefore, FEP Member Associations unanimously recommend that books in Lithuania keep benefiting of the lowest VAT rate available and that no changes are made to the copyright law, in order to pay due consideration to the undeniable social, educational, cultural and political benefits associated with a wider readership and a thriving publishing sector in any given country.


AUSTRIA - HAUPTVERBAND DES ÖSTERREICHISCHEN BUCHHANDELS
BELGIUM - VLAAMSE UITGEVERS VERENIGING - ASSOCIATION DES EDITEURS BELGES
BULGARIA - АСОЦИАЦИЯ БЪЛГАРСКА КНИГА
CZECH REPUBLIC - SVAZ ČESKÝCH KNIHKUPCŮ A NAKLADATELŮ
CYPRUS - PUBLISHERS ASSOCIATION OF CYPRUS
DENMARK - DEN DANSKE FORLAEGGERFORENING
ESTONIA - EESTI KIRJASTUSTE LIIT
FINLAND - SUOMEN KUSTANNUSYHDISTYS
FRANCE - SYNDICAT NATIONAL DE L'EDITION
GERMANY - BÖRSENVEREIN DES DEUTSCHEN BUCHHANDELS
GREECE - HELLENIC FEDERATION PUBLISHERS AND BOOKSELLERS
HUNGARY - A MAGYAR KÖNYVKIADOK ES KÖNYVTERJESZTOK EGYESÜLESE
ICELAND - FELAG ÍSLENSKRA BOKAUTGEFENDA
IRELAND - THE IRISH BOOK PUBLISHERS’ ASSOCIATION
ITALY - ASSOCIAZIONE ITALIANA EDITORI
LITHUANIA - LIETUVOS LEIDĖJŲ ASOCIACIJA
LUXEMBOURG - FEDERATION LUXEMBOURGEOISE DES EDITEURS DE LIVRES
THE NETHERLANDS - NEDERLANDS UITGEVERSVERBOND
NORWAY - DEN NORSKE FORLEGGERFORENING
POLAND - POLSKA IZBA KSIĄŻKI
PORTUGAL - ASSOCIAÇAO PORTUGUESA DE EDITORES E LIVREIROS
SLOVENIA - SLOVENIAN PUBLISHERS ASSOCIATION
SPAIN - FEDERACION DE GREMIOS DE EDITORES DE ESPAÑA
SWEDEN - SVENSKA FÖRLÄGGARE FÖRENINGEN
UNITED KINGDOM - THE PUBLISHERS ASSOCIATION

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