New European V.A.T Law

[Rolo]

First version of this law will have ZERO impact on US business... will hurt the high VAT tax countries in the EU more than US business. Already now some companies within the EU are moving from 25% VAT countires to low tax countries with 13-15% VAT. When some of the countries within the EU sees that they are NOT getting more tax income, but actual loosing tax to other parts within the EU, then it will be changed.

At that time I think ALL EU business will get the same rules as US business would have to apply, but at that time there will also be 25 countries in EU (10 more than now), and politicians will realize that it will cost more to administered 25 different VAT rates, and control them. So they will make 1 VAT rate for all digital products. Maybe the EU is lucky and that it will be around the time, when the US is looking at collecting sales tax on the internet, and maybe then, they can make a deal with the US to collect tax.

This is another law made by politicians (probably French), which have no roots in reality. It might sound good on paper, but thats about it...

I´m looking forward to version #2, until then I wish European companies/webmasters good luck - and hope you will vote for some more wise politicians next time.