US having to charge VAT to EU customers


S

Shane Cook

I noticed the EU, in it's infinite wisdom, has legislated to say US
businesses must charge VAT when they supply electronically consumable
products (newsletters, games, electronic information etc) to EU customers.
See

http://europa.eu.int/scadplus/leg/en/lvb/l31044.htm

I noticed this because many of the US companies I deal with have now started
charging VAT. I find this very interesting, as to how the EU can legislate
as to what a foreign company must do. I'm sure many companies in the US will
be unaware of this legislation and will continue to supply consumable
products to EU citizens, and continue not to bill VAT on such items. I'm
sure the US companies that this is directed at will be equally keen to hike
their prices by 17.5%, unless they are forced to do so.

Kind Regards,
Shane Cook.
 
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B

BT

Shane Cook said:
I noticed the EU, in it's infinite wisdom, has legislated to say US
businesses must charge VAT when they supply electronically consumable
products (newsletters, games, electronic information etc) to EU customers.
See

http://europa.eu.int/scadplus/leg/en/lvb/l31044.htm

I noticed this because many of the US companies I deal with have now started
charging VAT. I find this very interesting, as to how the EU can legislate
as to what a foreign company must do. I'm sure many companies in the US will
be unaware of this legislation and will continue to supply consumable
products to EU citizens, and continue not to bill VAT on such items. I'm
sure the US companies that this is directed at will be equally keen to hike
their prices by 17.5%, unless they are forced to do so.
These rules have been in place for some time, and only apply to
supplies via the Internet, i.e. supplies of digital products.
--
Robert Killington
visit www.vatark.co.uk
for help with VAT

To e-mail me please do so via my website.
 
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T

Thom

BT said:
These rules have been in place for some time, and only apply to
supplies via the Internet, i.e. supplies of digital products.
ISTR that it is because a pure internet transaction is covered by the
laws of the country where the purchaser resides (possibly just as well
.... otherwise certain dodgy internet activities would be 'legal' in the
UK - or at least outside the law).

Thom
 

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