The Brazilian supreme court recently confirmed a decision to remove taxes including VAT on supplies of e-books and e-readers.

While e-books are taxed at a standard VAT rate in the country, physical books are exempted (i.e. not subject to VAT) so there is a discrepancy much like in the EU. A trial began in September 2016 to discuss whether e-books should receive the same treatment as paper books.

The minister Dias Toffoli has declared that eBooks are “unmistakable manifestations of the technological advance that the written culture has experienced” and hence a tax immunity for eBooks and e-readers will apply. However, it will not apply to multifunctional devices such as tablets, smartphones and laptops.

Consequently, it is hoped that the price of eBooks & e-readers will drop significantly to become more affordable and might offer new opportunities for businesses.