Forum Moderators: LifeinAsia
I have tried to link to a few relevant places, but as this is a serious legal matter, professional advice should be taken:
UK Customs have today launched a website for a simplified VAT accounting scheme for businesses based outside the European Union (EU) that supply electronic services to EU consumers. The website allows qualifying businesses to register online with the UK a month ahead of schedule.From 1 July 2003, electronically supplied services such as web hosting and downloaded games, music and software will be subject to VAT at the rate due in the EU customer's country, when supplied by a non-EU based supplier.
[hmce.gov.uk...]
The defintion of electronically supplied services is given in VAT Information Sheet 04/03: Electronically supplied services: a guide to interpretation. Some examples are:supply of websites or web-hosting services;
downloaded software (including updates of software);
downloaded images, text or information, including making databases available;
digitised books or other electronic publications;
downloaded music, films or games;
electronic auctions; or
internet service packages.
[secure.hmce.gov.uk...]
From July 1, the Net will have to face up to a sobering new fact of life. Suppliers of digital services from outside the European Union (EU) will have to pay tax on sales to punters inside member states.The measure is designed to level playing fields, iron out distortions and close loopholes that have effectively meant that providers of digital services from outside the EU have been able to flog them tax-free.
[theregister.co.uk...]
Good Luck...
Shak
Guess this is the beginning ..... i'm sure more of this is to come.
There is lots of talk in USA about wanting to make internet services taxable both Federal and State, also Sales Tax.
Currently the public opposes it so much, nothing is happening, but i'm sure the future will see it changing...
