mgraham333 Posted June 9, 2003 Report Share Posted June 9, 2003 See: MSNBC article On July 1, a new EU directive goes into effect requiring all Internet firms to account for value added tax, or VAT, on "digital sales." THE LAW ADDS a 15 to 25 percent levy on select Internet transactions such as software and music downloads, monthly subscriptions to an Internet service provider and on any product purchased through an online auction anywhere in the 15-member bloc of nations. It sounds like music sales may not be affected, unless at an auction site? Quote Link to comment Share on other sites More sharing options...
Claude Posted June 9, 2003 Report Share Posted June 9, 2003 (edited) VAT has always been charged when physical goods were sold, for example on online CD orders. This new directive concerns "digital transactions" such as downloads or other online services where no goods are shipped. Ebay has to apply VAT on their auction fees. Professional sellers on ebay already had to charge VAT on their auctioned goods, so no change there. Unlike the US, Europe never had tax exemptions for online sales. The VAT rate of the seller's country is applicable. That's why AOL moves to Luxembourg, which has the lowest VAT rate in the EU. VAT rates in Europe Edited June 9, 2003 by Claude Quote Link to comment Share on other sites More sharing options...
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