EU to impose new tax on internet sale of 'digital' products!

[DeadKenny]

:eek::eek::eek:...
http://uk.news.yahoo.com/020212/80/cs4nj.html

This statement is especially worrying: "...helps close a loophole that let Europeans avoid paying value added tax (VAT) on products and services bought from non-EU Internet sites"

Just think of the impact on DVD imports!

The EU doesn't care about defending a competitive market and certainly not the consumer, unlike Australia who've taken the opposite view and are arguing about region coding being anti competitive!

:mad::mad:


It's a bit vague though as to whether this applies to stuff delivered online only (broadband content, software downloaded, etc), or any form of Internet business. Still, even then I sometimes buy software online to download from US sites because it's vastly cheaper.

[JamesW]

I'll be interested in seeing what exactly is covered:


The law, applying to online sales of software and computer games as well as some radio and television services, helps close a loophole that let Europeans avoid paying value added tax (VAT) on products and services bought from non-EU Internet sites.


Also, how will they enforce it? Can they make companies outside the EU add the tax onto their products for certain customers?

[Gromit]

This has been on the cards for some time and is really trying to address the fact that US citizens pay tax on online purchases and the EU - which is largely anti-competitive and protectionist - want their pound of flesh (as usual, for doing nothing to help the consumer :().

Whilst I strongly disagree with this I can see where they are coming from.

Now, if they would take the Australian viewpoint of region coding being bad for the consumer and stop EU retailers charging so damn much for their DVDs people would probably buy more from EU suppliers.

I am also at a loss as to how they will collect it. They could ask Mr. Postie to charge a fat fee for collecting it though :(

[stephen]

"Under the new law, non-EU suppliers of digitally delivered goods and services will have to register with a VAT authority of an EU state of their choice and levy VAT at the rate applicable in the state of residence of the customer."

How can the EU control suppliers that are not in the EU?

[SShaw]

Originally posted by stephen
"digitally delivered goods and services

I think this is the key phrase. So the new law would not seem to cover goods and services delivered in a more traditional manner (ie physically) - there should therefore be no impact on our importation of DVD's from overseas.

I would agree however that its going to prove incredibly difficult/impossible for the EU to enforce.

Scott

[AndyWilson]

The key is that traditionally delivered goods are already liable to VAT anyway, if they're over £18 and customs notice 'em!

This isn't going to affect the online purchasing of DVDs, CDs, Haddock or whatever at all...

[PaulaB]

I was reading down and it says that Freeserve have been wanting this because AOL is not having to pay VAT so it looks like it is trying to get vat from non eu isps. Do you think the other countries are going to do what they are told by the eu. They are not going to risk profit and they don't give a bit about the eu.

[Bleddyn Williams]

This has been on the cards for some time and is really trying to address the fact that US citizens pay tax on online purchases

Not really. We only pay tax if the business we're buying from has a presence in the state in which you live. For example, if I were to order from a Californian DVD web site, living in Massachusetts I would not pay tax, but someone who lived in California would.

Not paying tax on online orders is one of the attractions.:cool:

Bleddyn