| And that of electronic books and digital press drops to 4% | The Council of Ministers approved this week the reduction to 4% of VAT on electronic books and digital magazines and newspapers, equating it to the tax rate of these same paper productsThe Government of Spain has approved this week, in the Council of Ministers, the reduction to zero of VAT on the supply of medical equipment to public institutions, while it will apply a 4% drop to books and newspapers in electronic format, in a new royal decree of economic measures to face the coronavirus pandemic.According to sources from the Department of Consumer Affairs, the exemption from paying VAT on health products will be applied to the supply of national producers to public, non-profit entities and hospital centers, which will save more than 1,000 million euros.This decrease in VAT is in line with the reduction of tariffs by the European Union and aims to guarantee equal treatment between domestic and foreign producers.4% reduction in books and electronic pressOn the other hand, a VAT reduction will also be applied to electronic books, magazines and newspapers, which until now was 21%, to adapt them to the taxation of those for paper, which is 4%; and whose consumption has multiplied during home confinement. This reduction is applied in support of the media, which have seen their income decrease significantly, and in order to contribute to the maintenance of these public services as guarantors of citizens' right to information.
