Taxation of digital e-commerce.

From: Roberto Dondi <>
Date: Wed 15 May 2002 23:53:18 -0600

As from on May 7th

"The European Union has approved rules requiring non-EU
companies to charge value-added tax (VAT) on products sold
to EU consumers over the Internet, a move that has angered
the US.

The new rules, which are to take effect next July, are to
apply to online business-to-consumer (B2C) sales of anything
from software to sports and entertainment services. Non-EU
businesses would also have to charge VAT on subscription-based
and pay-per-view radio and television broadcasting offered
within the Union"

I first thought this measure is a kind of force-test among
superpowers. EU economy leaders are sick and tired to
give up market shares so they keep on unnerving the US
counterparts. Or it's an EU internal affair, where Competition
Commission lost the game in trying to create a freer market
for goods and services (you know how much the Europe's state-
owned companies enjoy subsidies). Or simply that is what EU
consumers deserve: price plus VAT make them far free and fair...

Would you, please, take the stand on this news?

--Roberto Dondi

Received on Thu May 16 2002 - 00:53:18 CDT


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