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Online Companies Must Pay European Union Taxes
(Click here to view the original thread with full colors/images)
Posted by: Kdr Kane
The EU's Council of Economic and Finance Ministers agreed earlier this month to require companies outside the EU to collect taxes on the goods and services they deliver digitally to European consumers, such as music, videos and e-books.
In the United States, an individual state can't force a company based outside its borders to collect sales taxes if that company has no physical presence within the state. Likewise, the EU may have trouble forcing foreign companies to collect the value-added tax (VAT) if they have no physical presence in the EU.
"If nobody complies, obviously it's going to be a problem."
Currently, the EU requires its member countries to tax sales of digital goods and services such as e-books and digitized songs at the place at which they are sold. Thus, U.S. stores do not have to collect the value-added tax when they sell to EU customers because the point of sale is not in the EU.
Source: C|Net
The EU is shifting the point of taxation from the point of sale to the point of delivery. EU companies shipping to customers outside of the EU will not have to pay this tax. The tax will only apply to digital sales. Physical goods will be exempt.
This precedent, if allowed, will open a whole can of worms with all other countries imposing taxes on consumers.
This law should die a slow, horrible death since it is probably not enforceable.
Posted by: redwench
ick
Posted by: Spork Lover
heh... they want Us companies to collect EU taxes even though they are not in the EU.
why should we collect their taxes? they denied our application to join 
This seems kind of like a write yourself a ticket if you speed law.
This law already seems like it's going to die..its bad idear.. kind of like prohibition
Posted by: TotalRecall
Tax this, that, this...the world's a tax.
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