If you follow me on Twitter, you might be wondering the reason Ive been posting about the changes to VAT on digital products - heres an article that explains it in more detail. Particularly note: This new VAT procedure was intended to prevent internet giants such as Amazon from avoiding paying VAT by basing themselves in Luxembourg. Instead of this intended effect, the new rule is in fact going to make complying with VAT so difficult that the only way to sell e-products will be to sell via large platforms like Amazon or Apple – who can hire enough lawyers to make the red tape of more than two dozen nations make sense and code an app on their website to calculate the amount payable correctly. Thus, its doubly incompetent – not only are the EU crushing small producers, they are reinforcing the monopoly of US online giants they intended to break. Even worse, they intend to expand the scheme to cover all online shopping, even for physical goods, by January 1st 2016; so this might be one of the last Christmases where you can shop at micro businesses online. You might not have a business, but it is likely you are going to find that as a consumer, you are going to be excluded from buying things online from outside of the EU from 1/1/2016 because organisations may be more inclined to exclude selling to EU citizens rather than deal with paying the VAT.
Posted on: Tue, 16 Dec 2014 13:44:49 +0000
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