Quote:
Originally posted by Rolo@Jun 6 2003, 11:50 AM
It will hurt profits + make higher costs for running a business because you have to pay for more tax administration ect.
Ex. on how it will hurt profits on $39.95 membership:
US citizen buys it and it cost $39.95, EU citizen buys it and it cost $49.94 - how many EU citizens will actual pay upto 25% voluntary? They will shop around until they find a membership, which fit the price limited they are willing to spend. So lets say that the highest price you can sell your membership for is $39.95, then you will have to lower your EU price with upto 25%, and then add VAT to that price... This is what will hurt profits....
Like I said it looks good on paper, but it will not work in the real world.
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The cost of tax administration is minimal because it should have already been calculated by your billing software, a one off programing charge.
If it is enforced then the EU citizens have to accept it,
the dialer is biggest biller in the EU and they get charged sales tax on that.