Taxes

AZERBAIJAN
Generally speaking, no tax privileges are provided for books. Publishers pay the same kinds of taxes as other businesses. (VAT: 20% of retail price; social maintenance fund: 35% of wages; employment fund: 2% of wage; social defence fund for invalids: 1% of profit.
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BULGARIA
Publishers and booksellers pay the same taxes as other ordinary business. VAT taxation is 20%. For textbooks and the transfer of cultural articles to museums, galleries and libraries supported by the Budget the VAT taxation is 0%..
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CROATIA
The value added tax, after only 22 months of its introduction, was reduced to 0! The ministry of finance defines books and non-periodical publications as recommended by Unesco, as having the following features:
1. Professional, scientific, arts and cultural contents, but not promotional ones;
2. Technically they should have a form of a book, printed on the paper or other text carriers - papyrus, leather, textile (but excluding CD ROM, video cassette, audio-cassette, disk, gramophone disk and similar).
3. They have at least 49 pages excluding front page, except for children's books and book supplements.
The Law and the follow-up Rulebook does not comprise periodicals, brochures, daily and periodical press; literary or professional journals therefore carry 22% VAT like other magazines. Even tourist guidebooks are not considered a book in this sense. This Law and the Rulebook relate only to a book as "a goods at the moment when it is completely finished and delivered by the publisher", so that all the services during the process are subject to 22% VAT.
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CZECH REPUBLIC
The rate of value-added tax for books is 5%. Book prices are more influenced by prices of materials as well as printing services and equipment. Copies presented free of charge cannot be written off for the purposes of taxation, the value of such gifts can only be subtracted from the net profit. Legal deposit copies are added to the publisher's costs.

GEORGIA
According to the Tax Code of Georgia: fiction, educational, scientific, school textbook, periodical impressions are exempt from VAT; others are taxed at 20% for VAT. The rate of VAT on materials and equipment has caused an increase in the price of books. Other taxes are: Salary tax-31%; Income tax-20%; Profit tax-20% Import tax (customs fee, service fee, VAT)-35%;
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HUNGARY
Publishers and booksellers pay the same kinds of taxes as other ordinary businesses. Similarly to other actors in the cultural field, they are subject to a special levy collected for the National Cultural Fund: 1% of net turnover. Books containing sex, pornography and violence The levy is 20%. VAT taxation is presently set at three levels ranging from 25% to 12% and 0% for school textbooks. (See textbooks.)
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LATVIA
A considerable percentage of books - educational, scientific and books where the original was in Latvian - are exempt from VAT.
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LITHUANIA
At present there are 16 kinds of taxes and duties. Corporate income tax is 29%. The income earned by self-employed individuals is subject to income tax. This includes partnerships or private (personal) enterprises without the rights of a legal person that is engaged in commercial activities (e.g. booksellers). Self-employed business income is taxed at the rate of 24%. Small businesses, corporations or individuals - pay 15% income tax, with a gross income below 1,000,000 Litas (250,000 USD) and where the average number of employees does not exceed fifty persons. Companies registered and operating in a free economic zone benefit from additional incentives. Partnerships and private (personal) enterprises may choose between two forms of recognising total revenues: at the point of earning income (invoicing) or the point of actual receipt of money. Employers must pay 30% from general salaries in monthly social security payments. 27% is for social security and the remaining 3% is for health insurance. Employees must pay 1% of their gross salary for social insurance. Social security taxes are paid from the sum of wages that must not be in excess of three average monthly salaries. Books (publishing, editing and dissemination) are exempt from VAT, except for books of an erotic and violent character which are levied at the standard rate of 18%. Businesses whose annual income ranges between 10,000 and 100,000 Litas (2,500 - 25,000 USD) may, at their own discretion, register as a VAT payer, and calculate and pay VAT beginning with the month following the month of registration. Publications of erotic and violent character are subject to 75% excise tax. Other significant taxes are: stamp duties, pollution tax, land tax and contributions to the State Road Fund.
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MOLDOVA
The normal VAT rate is 20%. In 1999 the elaboration, editing and polygraphic activity connected to books categorised as "culture, education and science" are exempted from VAT. There is a lump sum tax upon retail sales of books of MDL 30 (about 3 USD) per month..
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ROMANIA
The usual VAT rate is 18% but it was made 0% for books in 1999. A peculiar quasi tax is the literary stamp, which is 2% of the retail price of each book sold. (To be more precise, it is only 1,96% of the total, because the full 2% must be added to the pre-tax price.)
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RUSSIA
Practically all decent book publishing and related services like delivery, are exempt of VAT as well as of tax on profit.
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SLOVAKIA
The amount of VAT is among the highest in Europe (23%, on books: 10%). The price of books is also influenced by other indirect taxes such as VAT on material, excise taxes on hydrocarbon fuels and mineral oils, road tax, property taxes that are reflected in the prices of all goods and services related to book publishing (printing work, distribution, sales), as well as contributions to the Art Fund. Certain revenues of publishers are exempt from income taxation in the event that they are individuals..
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SLOVENIA
After long preparations, VAT was introduced on July 1, 1999. The general rate is 19% and reduced rate 8%: this applies to books, too. Other kinds of tax affecting publishers include: corporate income tax, taxation of royalties, contributions for pension funds, health care and social security. Personal income tax is charged to all employees and to royalties. In addition, legal persons are often charged additional taxes (e.g. taxes on capital gains). In Slovenia authors often decide to publish their books themselves. Profits from sales of self-published books must be declared in a special form, next to the personal income tax declaration. A self- publishing author must keep business records. Gross paid royalties (royalties + advance payment of personal income tax) are entered as expenses. The author will declare the same royalties as income in his personal tax form, including the amount of advanced payment.

TAJIKISTAN
The 20% VAT is the most striking feature.
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UKRAINE
Publishers and booksellers are subject to general taxes, but some exceptions apply. Exemption from taxation is afforded to operations selling home-made books, as well as textbooks and educational handbooks. So-called small business publishing companies can opt for a simplified system of taxation which is very important in Ukraine with its cumbersome taxation system. There are a number of taxes that are paid by publishers. Two main taxes are VAT 20% and Income tax 30%. VAT taxation for school textbooks is 0%.
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YUGOSLAVIA
In Yugoslavia there is no value added tax, but there is a tax on sales instead. Publications having special significance for science, art and culture are tax exempted. Tax reduction is provided for books, brochures, magazines, and publications of scholarly, scientific, artistic, cultural and educational character, excluding those which are subject to tax exemption. The reduced tax rate is 9% (the regular tax rate is 20%). In Montenegro, partly in violation of the federal law, there are some different rules: all publications which, according to the opinion of the competent ministry, are of special significance to science, art, culture and sports are tax exempted. For publications which are not tax exempted, the tax rate is 25%. Publishers have a duty to pay tax on profit, which applies to all corporations.
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