Pretty sure they pay UK VAT on physical goods. This article is referring to the changes in VAT for digital goods. By the way, physical books are vat-free in th

Pretty sure they pay UK VAT on physical goods. This article is referring to the changes in VAT for digital goods. By the way, physical books are vat-free in the UK (presumably because it is seen as a good thing to encourage people to read), whereas e-books have always been standard VAT in the UK, making e-books less competitive.