FC: Europe will tax digital goods bought from U.S. starting July 1

From: Declan McCullagh (declanat_private)
Date: Thu Jun 19 2003 - 21:25:13 PDT

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    From: Fred Heutte <phredat_private>
    To: <declanat_private>
    Date: Wed, 18 Jun 2003 20:38:58 -0700
    X-Mailer: Vivian Mail [325.0109300]
    Subject: EU set to introduce VAT on 'digital sales' by US and non-EU companies
    
    
    http://www.euractiv.com/cgi-bin/cgint.exe/?204&OIDN=1505680&-tt=me
    
    EU set to introduce VAT on 'digital sales' by US and non-EU
    companies
    
    In short:
    
    Effective 1 July 2003, the EU will begin collecting value-added
    tax (VAT) on "digital sales" of goods and other electronic
    transactions from American and other non-EU companies.
    
    Background:
    
    The law, based on a Council Directive adopted in May 2002, levies
    a 15 to 25 per cent tax on various transactions conducted over the
    Internet such as software and music downloads, subscriptions to
    services by an Internet Service Provider (ISP), and on all
    products purchased through an online auction anywhere within the
    EU Member States. Accordingly, US companies engaged in "digital
    sales" to customers in the EU might have to follow suit and
    collect taxes [. . .].
    
    
    
    
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