Quote:
Originally posted by el pres@Jun 6 2003, 08:32 AM
You charge the standard membership fee plus EU sales tax, you then pay the sales tax to the EU, net result for you is the same.
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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.
06-06-2003
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