DIGITAL VAT

Keith Nuthall
THE US government is likely to be upset by the decision of the European Union Council of Ministers (finance) to approve its proposed new VAT regime for digital products downloaded from the Internet; this system allows EU exporters to sell their goods without charging sales tax, but penalises importers, notably American companies.

In future, they will have to register for VAT in one EU country, which would then collect the tax at the rate of the Member State of the final consumer, transferring this revenue to the relevant national ...


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