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A taxpayer queried the VAT rate applicable to subscriptions for electronic products such as databases, magazines and books. The DGT ruled that electronic books, newspapers and magazines are subject to the 4% reduced rate, whereas databases are subject to the standard 21% rate.
This clarification distinguishes between digital publications, which benefit from a reduced VAT rate, and databases, which are taxed at the standard rate, affecting pricing strategies for digital content providers.
The tax team reviews your specific situation.
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