News
[PSUs]| Thursday 14th February 2008 |
The reforms mean that VAT on telecommunications, broadcasting and electronic services such as music, movies, games and ringtones will now be charged at the rate of the consumer's country, rather than the supplier's.
Many e-commerce operators have based themselves in Luxembourg to take advantage of the EU's lowest VAT rate of 15%, among them household names such as Amazon, AOL, Apple, Ebay, PayPal and Skype.
But from 2015, UK consumers will have to pay the local rate of 17.5%; in other countries the impact will be higher, most notably Sweden where 25% is added to each transaction.
"I am content that the change in the rules on the place of supply of services will ensure a more even playing field for businesses supplying services," says European Commissioner for taxation and customs, László Kovács.
Submit to: Digg | Slashdot | Del.icio.us | Technorati
