Some authors using Amazon's Kindle Direct Publishing (KDP) platform are reporting that Value Added Tax (VAT) is being incorrectly applied to their print books. In several cases, books that should qualify for a reduced or zero VAT rate—such as children’s books or books sold in the UK—are instead subject to the standard rate. The result is higher retail prices for readers and confusion among authors.
VAT is a consumption tax applied to goods and services in many countries, including those in the European Union and the UK. For books sold through Amazon marketplaces in these regions, VAT is automatically added at checkout, based on the customer’s location and local tax laws. In some countries, such as the UK, printed books are typically exempt from VAT. In others, books may qualify for a reduced rate. If Amazon applies the wrong rate, even unintentionally, it can inflate the retail price and mislead both buyers and sellers.
Amazon’s VAT help page outlines general guidelines, noting that rates vary by country, book type, and customer location. However, key details remain unclear, particularly around how KDP determines which books qualify for the reduced rate. Authors who seek clarification are typically directed to customer support, but responses have been inconsistent.
What KDP Says About VAT
According to Amazon, VAT is applied to books sold on Amazon marketplaces in the UK and European Union, including Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it, Amazon.es, Amazon.nl, Amazon.pl, and Amazon.se. The rate varies based on the customer’s country, the type of book being sold, and applicable local laws.
KDP’s help page on VAT explains that print books may qualify for either a reduced or standard VAT rate. In general, traditional narrative books benefit from reduced rates, but other formats—including children’s books, notebooks, planners, coloring books, and titles that include “digital or print bonus content”—may be flagged for standard VAT. The company does not explain how these classifications are applied or whether metadata, keywords, or other submission fields influence them.
Here are the current VAT rates by country, as listed by Amazon:
- France: 5.5% reduced rate, 20% standard rate
- Italy: 4% reduced rate, 22% standard rate
- Spain: 4% reduced rate, 21% standard rate
- Germany: 7% reduced rate, 19% standard rate
- United Kingdom: 0% reduced rate (printed books), 20% standard rate
- Netherlands: 9% reduced rate, 21% standard rate
- Poland: 5% reduced rate, 23% standard rate
- Sweden: 6% reduced rate, 25% standard rate
When authors set a list price in one of these regions, KDP displays an estimated VAT-inclusive price, but the final retail price may differ depending on the buyer’s country. Royalties are based on the VAT-exclusive price, so authors are not directly penalized, but the final price a customer sees can be significantly higher than expected.
Where the Confusion Lies
While KDP provides general guidelines on how VAT is applied, the platform does not explain how it determines which books fall into the standard-rate category. Authors often discover a VAT issue only after noticing unexpectedly high retail prices in certain regions or after hearing from readers.
Several categories appear especially vulnerable to misclassification. Books labeled as children’s titles may be flagged for the standard VAT rate, despite being traditionally eligible for reduced rates in many countries. Likewise, planners, journals, and coloring books are often treated as taxable at the full rate. Books that include supplementary content—such as downloadable materials, QR codes, or even brief appendices—can also trigger reclassification, even when those extras are not central to the book’s purpose.
Because KDP’s pricing tool automatically adds VAT during the list price setup process, authors may not realize a problem exists unless they manually check their retail price in each country. Those who set international pricing to auto-calculate from the U.S. price have even less visibility. In some cases, books sold in countries like the UK—where printed books are generally exempt—end up with VAT added anyway due to how the book is categorized by KDP.
When ALLi contacted Amazon about the issue, Darren Hardy, KDP’s UK representative, pointed to the VAT help page and related documentation, which he said had been updated recently. He noted the complexity of the issue and said he was unable to answer specific questions about why VAT might be applied to exempt books or how VAT is managed in individual cases. Authors with concerns are advised to contact KDP through their accounts for resolution.
Authors who contact KDP support about VAT classification typically receive responses that refer back to the help pages or explain that VAT is determined based on local tax laws and the type of book. In some cases, authors are advised to review how their books are categorized, though specific guidance on how to adjust classifications is limited. As a result, some authors remain uncertain about how VAT rates are being applied to their titles, particularly when the final customer price includes tax that was not anticipated.
Tips for Authors
For authors encountering potential VAT misclassification, the first step is to examine the pricing breakdown in the “Royalty & Pricing” section of the Paperback Rights & Pricing tab in KDP. This section shows both the VAT-exclusive and estimated VAT-inclusive prices for each country. If the VAT-inclusive price looks too high—especially in countries where books should be exempt or charged at a reduced rate—it may signal a classification issue.
Authors can contact KDP support via the “Contact Us” link in their KDP dashboard. It’s helpful to provide clear details about the book, the country affected, and screenshots of the pricing display. Avoiding keywords or metadata that suggest bonus content or workbook-like features may reduce the risk of misclassification. This includes language like “activity,” “worksheet,” or references to downloads and multimedia.
Authors who allow KDP to auto-calculate pricing from the U.S. list price may want to switch to manual pricing to better monitor changes in each marketplace. Since VAT rates vary significantly—and Amazon does not always apply exemptions as expected—direct oversight remains the most reliable method to ensure accurate pricing.
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