FC: Letter to the editor on E.U. tax on orders from U.S. firms

From: Declan McCullagh (declanat_private)
Date: Mon Apr 23 2001 - 11:20:41 PDT

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    Date: Mon, 23 Apr 2001 10:11:15 -0700
    From: Norman MacLeod <gaelwolfat_private>
    Organization: Gaelic Wolf Consulting
    To: declanat_private
    Subject: Message I sent to the Register author on the EU tax silliness...
    
    Declan --
    
    Thought you might find this of interest...it's what I sent to the Register 
    author who wrote the piece on the EU expecting me to collect their VAT for 
    them...
    
    ...Didn't we win a bit of a rebellion over this sort of thing a couple of 
    hundred years ago?
    
       Norman MacLeod
    
    =================================
    
    
    Mr. Cullen --
    
    Regarding your article  on the EU trying to turn U.S. businesses into EU 
    tax collectors...
    
    
    	http://www.theregister.co.uk/content/23/18430.html
    
    You maintain that the US has no room to "preach"  because it doesn't 
    recognize international boundaries where US citizens and US businesses are 
    concerned.  That, sir, is precisely the point.  Those US citizens and the 
    companies are represented in the governmental bodies that authorize the 
    collection of taxes.  If you would think back a bit, this was one of the 
    central themes in a wee tiff a few more than two hundred years ago...and 
    that snarlyguster resulted in the separation of a large chunk of North 
    America from the British Crown.
    
    I am not represented in any EU member government.  I do not have a physical 
    location in the EU  Therefore, the EU has no legal authority over me in 
    regard to turning me into a tax collector on the EU's behalf.  If the EU 
    decides that the computer terminal at which one of its citizens orders from 
    me becomes a valid physical location for the point of sale, then it's the 
    proprietor at the physical location who is responsible for paying the 
    tax...that would happen to be the EU citizen, would it not?  After all, 
    although I may be making the sale to him or her, I am not the one who 
    opened the point of sale location...
    
    As for such an action on the EU's part placing me on an even footing with 
    my EU counterparts, I have a question for you...  When did EU businesses 
    begin collecting sales taxes for each of the US states that have sales taxes?
    
    I see a couple of alternatives here...
    
    First, if the EU wants to collect VAT on electronic products purchased from 
    a business entity located in the US, then the EU can figure out a way to do 
    that once the purchase enters the EU.  If the EU's privacy laws prevent 
    this through the electronic purchasing system, then it's up to the EU to 
    figure out what to do about it.  If the EU wants to consider the EU 
    citizen's privacy paramount in this regard, then the EU better not try to 
    turn me into a tattle-tale on its behalf...that would be a violation of the 
    EU citizen's privacy, after all..
    
    If the EU feels it cannot trust its citizens in this regard, that's not my 
    problem
    
    The EU's tax system can't handle this internally?  Not my problem.  I have 
    enough government paperwork to take care of already...I don't need the 
    EU's, too.
    
    If that's not good enough for the EU, then the European Parliament can 
    decide whether or not it wants to pass a law banning my goods from all EU 
    countries.  I might not like it...but I'm still not going to become a tax 
    collector for the EU.  ...Of course, if the EU were to do that, I wouldn't 
    be buying anything produced in the EU, either.
    
    Thank you very much for your time and for your interest in reading my message.
    
       Norman MacLeod
       Port Townsend, Washington
    
                     ==========================
    
                       GAELIC WOLF CONSULTING
                      http://www.gaelwolf.com/
    
    
    
    
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