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Bonus Content in Books and VAT Issues – How Do You Handle It?
Hi everyone, I have a question about using bonuses in books to build an email list. I often hear the recommendation to include a bonus resource (such as audio files, meditations, worksheets, etc.) and provide access through a QR code or link inside the book. This seems like a great way to grow an email list and connect with readers. However, I recently added a few bonus meditations to one of my German books. The book itself contains 233 pages of original content, and the meditations are only an optional extra. After a review, Amazon changed the VAT classification from the reduced VAT rate for books to the standard VAT rate. As a result, the retail price increased significantly, while my royalties remained the same. Unfortunately, this also makes the book much less competitive in the market. I’m now wondering how other publishers and authors handle this. Do you include bonuses in your books? If so, how do you structure them to avoid VAT or classification issues? Are there best practices for building an email list through book bonuses without risking a change in VAT treatment? I’d really appreciate hearing about your experiences and recommendations. Thank you!
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Thank you so much for your detailed reply @Andrey Bernhart This was a high-content book with 230 pages of content, and just a very small bonus at the end (6 meditations), so it's not an interactive experience at all, really. Amazon's answer is: This applies regardless of the volume, duration, or optional nature of the linked digital material. The presence of the QR code linking to digital content is itself the determining factor under current tax legislation. The problem with leaving the price high is that I'm not competitive anymore, and with lowering the price, I can't afford the ad costs. I really struggle to understand how I can create an email list like this...
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