Brett_Tabke - 2:15 pm on Feb 14, 2002 (gmt 0)

In what is sure to be only the first salvo in a rapidly escalating form of a trade war, the EU has declared that all foreigners must pay a local tax when selling goods in the EU. The so called VAT (Value Added Tax) is to be collected locally on all internet sales.

[pcworld.com...]

"This measure will remove the obligation for EU firms to apply VAT when exporting to world markets." Under the agreed system, companies outside of the European Union must pay the VAT rate in the country where their customers reside, through one portal country of their choosing. That country would then pass on the VAT of the consumer's country.