There is currently a tax loophole that allows users in the United Kingdom to download and use music, Apps, and books without complying to their Value Added Tax (VAT) policy, and instead adhering to significantly lower International tax policies.
However, according to a report by The Guardian, government officials are now trying to close this loophole, and implement VAT in this sector, so consumers of digital media will too have to comply with this policy.
The policy is set to be implemented starting on the 1st of January, 2015, so there is still time for change. People supporting the implementation of VAT to digital downloads claim that this will make it fair for other UK based companies, as they currently have to pay more in taxes than companies that sell media online.
The end result? Consumers may end up paying up to 20% more than they previously had to for digital content.