Re: Taxation of digital e-commerce.

From: Sean Dillon <>
Date: Thu 16 May 2002 14:46:24 -0600

Roberto Dondi <> wrote:

> 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.

And quite right! Considering US based ISPs such as AOL who ply
their trade in the UK don't pay any VAT (sales tax) I really
can't grumble with this and have long argued tht it should be
the case.

For far too long they've had an unfair advantage over UK based
companies which has meant they are able to undecut opposition by
at least 17.5%.

If we have to pay sales tax on US based eCommerce products then
I fail to see the why the 'US' is so 'angered' or do they not
like things when it's not in their favour and we have a much more
level playing field.

There, and I didn't even mention the steel industry :-)


Received on Thu May 16 2002 - 15:46:24 CDT


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