France hikes VAT on books to 7%

Most would agree that booksellers in France are better off than elsewhere, with subsidies from the governement and a fixed book price. But it is still one of the country’s least profitable businesses and yesterday, as the application of a VAT rate increase of 5.5% to 7% on books went into effect, it added to booksellers’ daily struggle. The decision made by President Nicolas Sarkozy to raise the VAT as part of an austerity measure is seen by many as extremely damaging to booksellers, in particular to the 3,000+ independent bookshops