UK consumers could be in line to save up to £1 per book as the European Union looks set to revisit the thorny issue of the inconsistent application of VAT rates on electronic books sales in EU member states.

Currently, UK booksellers must charge the full standard VAT rate of 20% for all e-book purchases compared to a reduced rate of 5.5% and 3% respectively in France and Luxembourg.

The issue looks set to be discussed in Brussels at a two-day Council of the EU meeting on Thursday and Friday when proposals from the Polish presidency to harmonise e-books VAT rates downwards takes place. It follows the EC's failure to compel France and Luxembourg to raise their e-book rates last year. If successful it could save customers over £1 on the average e-book price.

Historically, anomalies in e-book VAT rates arose because countries have long been permitted by EU law to charge reduced or nil VAT rates on printed books because they are deemed to be of special social benefit. But such VAT laws were drafted prior to the digital age, and e-books were never given a similar derogation. Countries such as France and Luxembourg have broken ranks on VAT rates in a bid to encourage digital industry to locate in their country, and then sell to consumers globally. This is seen as unfair competition by the UK and Germany.

In October 2012, under pressure from a number of EU finance ministries, the EC issued a reasoned opinion ordering countries such as Luxembourg and France to raise VAT rates on e-books. But this has so far failed in a referral to the European Court of Justice, the final court of appeal for EU law, which has the power to enforce such a rise.

Richard Asquith, head of tax at accounting services company, TMF Group, said:'The EU's attempt to force a rise across Europe in e-book VAT rates to the higher rate seems to have drawn a blank. It has lost a number of similar tax cases on fiscal neutrality. The more powerful Council may finally bring solution that benefits the UK consumer'.