Software cheaper in physical form than in soft copy?

Tower, this is bravo, echo, echo...

I enjoy photography. I’m not very good at it but I have lots of fun trying new things with my camera all the time (see above my shot of a bee flying between flowers, for example).

I use Adobe’s excellent Lightroom 3 Beta to manage my photos and to upload them to Flickr where I share them under a Creative Commons license.

Today when I went to purchase a copy of Lightroom I discovered that the cost to buy it for download was €301.29 whereas to obtain the physical copy (including shipping) was only €288.84!*

I asked on Twitter how was it possible that the physical copy was cheaper than the downloadable version and Adobe’s Robin Charney replied saying

it’s to do with the VAT rate in Ireland which is where our online store is based

I don’t get that – how is the VAT rate higher for goods which are downloaded, as opposed to…