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February 13, 2002
Wednesday
 
 
EU taxing the Internet
Natalija Radic (Croatia)  European Union

I realise I have already written once about this ludicrous EU plan to compel even foreign companies who want to deliver goods and services on-line to people within the EU to collect VAT on digital goods and services from their customers and pass it on to the EU.

But how do they propose to force people to register for Value Added Tax if they are in, say, India or Croatia or Ukraine? What possible motivations could an off-shore company have for collecting taxes on behalf of the European Union? How are they going to prove they have even delivered the 'taxable' digital goods? Even if the vendor in is a country willing to cooperate with the EU tax authorities, they can just use disposable third-party re-sellers (i.e. "Acme Sprockets Resale Limited of Bangladesh"). How stupid are these people? At least I have an answer to that last question...



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