IP: Firms outside EU to pay digital tax

[David Farber <dfarber () earthlink net>]

-----Original Message-----
From: "the terminal of Geoff Goodfellow" <geoff () beat net>
Date: Wed, 8 May 2002 20:21:28 
To: "Dave E-mail Pamphleteer Farber" <farber () cis upenn edu>
Subject: Firms outside EU to pay digital tax

Firms outside EU to pay digital tax

By Ray Bennett
The Hollywood Reporter

LONDON -- Companies from outside the European Union will have to pay tax
on electronic and digital products they sell in countries within the EU,
according to a law passed Tuesday in Brussels.

The law affects companies from the United States and elsewhere selling
digital downloads of music or software as well as subscription-based and
pay-per-listen radio and pay-per-view television broadcasting. They will
pay value-added tax, which is levied at an average of 19% across Europe.

Europe-based Internet companies now pay VAT on such sales in the country
where they are based. Companies from other countries have been exempt,
but under the new law they will pay taxes in the countries where a sale
is made.

European Commissioner for Taxation Frits Bolkestein welcomed the new
rules.

"They will remove the serious competitive handicap that EU firms
currently face in comparison with non-EU suppliers of digital services,
both when exporting to world markets and when selling to European
consumers," Bolkestein said.

Member states of the EU must implement the law by July 1, 2003.

http://www.hollywoodreporter.com/hollywoodreporter/convergence/article_displ
ay.jsp?vnu_content_id=1484971

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"success is getting what you want & happiness is wanting what you get"
http://www.nytimes.com/library/tech/99/01/biztech/articles/17drop.html


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