New European V.A.T Law

el pres · 06-06-2003

Serge,

European companies already pay sales tax on online sales,
this new law is to make anyone selling to a EU consumer pay sales tax (to level the playing field so to speak).

So technically if I buy a membership from Spain to one of Mikes sites,
he would have to pay sales tax to the EU on it.

Here's some info in it from Price Waterhouse.
http://www.pwcebiztoolkit.com/

If this is actually enforced and you do a large amount of billing to the EU,
it would be easier to get au EU presence in a low tax country and file your returns at one rate.

If you don't have a EU presence you need to calculate taxes individually for all the countries.

06-06-2003	#4
el pres Members Join Date: Oct 2002 Location: Spain Posts: 425	Serge, European companies already pay sales tax on online sales, this new law is to make anyone selling to a EU consumer pay sales tax (to level the playing field so to speak). So technically if I buy a membership from Spain to one of Mikes sites, he would have to pay sales tax to the EU on it. Here's some info in it from Price Waterhouse. http://www.pwcebiztoolkit.com/ If this is actually enforced and you do a large amount of billing to the EU, it would be easier to get au EU presence in a low tax country and file your returns at one rate. If you don't have a EU presence you need to calculate taxes individually for all the countries.