Since when did US companies become EU tax collectors ? :)

In article , Trust No One writes

It became effective from 1st July 2003 (Council Directive 2002/38/EC), here's a summary:

. Some people are applying it, others (like my NSP) have said sod off as there's not a lot HMCE can do to enforce it if the supplier has no interests in the EU. If you can make a choice, chose a non-complying supplier.

yes, pretty widespread. Many non-EU companies are setting up shell operations in the place with the lowest VAT (Madeira is popular with ISPs).

If the EU can fine Microsoft 5% of its global turnover per day for non-compliance there is clearly some mechanism in place for enforcement.

Phil

In article , Phil Thompson writes

Ah, so if the supplier is in the EU then the rate is that of the supplier's country and if outside it is the rate in the customer's country?

I microsoft has assets over here then I suppose they are pursuable.

X-No-Archive: yes In message , fred writes

MS wanted to give an honest name to a software package that had been deliberately crippled at the request of the EU. 'Reduced Functionality' IIR was the name MS wanted to use.

...

It can be either the supplier's country or the recipient's. Obviously, for the supplier, the former is simpler.

Chris

It was widely reported in the American press, but not so well publicised here. Freeserve campaigned heavily for it as their main competitor, AOL was getting away without charging VAT on their ISP subscription fees.

A surprisingly large number of companies are complying with the rules. Others are redirecting customers to an EU subsidiary or reseller to avoid having to register themselves.

that depends what it is. Search for "place of supply of services" if you're that keen :-)

ISTR goods are different to services

Phil

who needs assets - extradite Bill Gates :)

Phil

Thanks for the info, South Park the movie is my fave treatment of Bill and comeuppance (where he gets shot).

"fred" wrote

The supplier obviously *does* have interests in the EU - they are selling in the EU!!

After a bit of digging around I was able to find another US company supplying the same software package (niche)without the VAT feature.

is it a download ? if not you may get wacked for VAT, duty and an admin fee when it lands.

Phil

Has MS ever paid a penny of the fines reported - or have they constantly taken the ruling to appeal?

Hmmm... Amazon charges VAT (at the Dutch rate) on books supplied from the UK (where the VAT rate on books is 0%).

Axel

Amazon has a network of companies set up in the EU I think (according to the last package I had from them) so there's probably an amazon.nl involved even if only virtually.

Phil

I don't think they have actually been fined, the fine is the stick to make them comply by negotiation.

Phil

Be prepared for a hefty fee at the Post Office.

Actually it was a download :)

I wonder how something like this could be policed. What's to stop unscrupulous companies from collecting and pocketing up to 25% extra rather than passing it on to the EU as they are supposed to?

business customers perhaps ?

Phil