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A Poisoned Chalice?

10 July 2002 / Loma Tai
Issue: 3865 / Categories: Forum & Feedback

LOMA TAI discusses the proposed new VAT régime for internet sales into the European Union.

LOMA TAI discusses the proposed new VAT régime for internet sales into the European Union.

ON 12 FEBRUARY 2002 the Council of the European Union approved a directive and a regulation requiring non-European Union businesses selling digital products to customers living in the European Union to collect VAT on each transaction concerning 'digital products' which include: website supply website hosting distance maintenance of programs and equipment supply of software images text information and databases music films games gambling games the broadcast of political cultural artistic sporting scientific and entertainment events and the supply of distance teaching materials. The VAT rules concerning business to business transactions remain unchanged.

Member States must bring into force laws to comply with this directive by 1 July 2003.

The perceived problem

The directive aims to...

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