An article in the New York Times (Dec 2, 2011) describes the classification of ebooks as a service in Europe, thus facing sales taxes close to 20% vs a tax close to 5% for paper books.  In addition, books a charged taxes based on the location of the seller, not the buyer.  In contrast, ebooks are exempt from taxes in New York, and are charged the same as books everywhere else.  Given an interest in sustainable products, is Europe’s treatment of ebooks rational ? Given that the taxes based on supplier location has caused companies like Amazon to locate in Luxemborg, how will supply chains change if taxes shift to be based on buyer locations? Given France’s unilateral move to match ebook and book tacxes to be closer to 5 %, how will hat impact European book supply chains ?