Tanaka Posted June 9, 2003 Posted June 9, 2003 Does anyone know more details about the new EU tax law? Essentially this law will require all non-EU companies to collect VAT on internet services (and I believe sales on physical items as well), for sales to anyone in the EU. I can't find more details than the http://www.wired.com/news/print/0,1294,52351,00.html story at wired Please post what you know!
Guest Posted June 17, 2003 Posted June 17, 2003 Interested parties should obtain "the creature from jekyll island" isbn 0-912986-18-2 The only way now to conduct internet transactions is via offshore companies, and via virtual banks, (while ensuring that 20% of the sale is kept off shore in deposit accounts (e-gold) until such times as one is forced to pay the tax. We list tax as a separate entity and also state that all taxes are the liability of the buyer! in our terms. Ensure you keep historic records of all transactions and can prove that all customers agree to your terms, this then transfers the liability of taxation to the customer, which is where it belongs. EU companies have not understood that hosting in EU automatically ensures that the ip tracking enables the authorities to track every email and transaction and thereby ultimately levy taxes. What happened to freedom and democracy?
Troth Posted July 6, 2003 Posted July 6, 2003 Essentially this law will require all non-EU companies to collect VAT on internet services (and I believe sales on physical items as well), for sales to anyone in the EU. The law only applies to digital products/services, selling physical items is the same as before, VAT is added by the customs of the country you're shipping to if they decide to check the parcel.
little.pm Posted July 28, 2003 Posted July 28, 2003 The law only applies to digital products/services, selling physical items is the same as before, VAT is added by the customs of the country you're shipping to if they decide to check the parcel. The problem here is that the VAT for the shipping costs arise in the country where the online story is registered. That means if a customer from the US purchases in a german store he will have to pay for the goods without tax but will have to pay for shipping including tax as this is a service that is "consumed" in Germany and therfore taxable. As of my current knowldge Oscommerce has there a heavy bug that needs a fix as this bug makes selling to other contries a risk or a loss as one will have to pay for shipping incl. tax but wouldn't get a refund for those taxes paid wheter from the shipping company nor the tax authorities nor the customer. If you have knowledge opf any solution to this please gimme a hint. sometimes I change code before reading the comments, sometimes code doesn't even have comments, sometimes I rechange code after I read the code others wrote :-)
smartboyinuk Posted August 4, 2003 Posted August 4, 2003 The law only applies to digital products/services, selling physical items is the same as before, VAT is added by the customs of the country you're shipping to if they decide to check the parcel. The problem here is that the VAT for the shipping costs arise in the country where the online story is registered. That means if a customer from the US purchases in a german store he will have to pay for the goods without tax but will have to pay for shipping including tax as this is a service that is "consumed" in Germany and therfore taxable. As of my current knowldge Oscommerce has there a heavy bug that needs a fix as this bug makes selling to other contries a risk or a loss as one will have to pay for shipping incl. tax but wouldn't get a refund for those taxes paid wheter from the shipping company nor the tax authorities nor the customer. If you have knowledge opf any solution to this please gimme a hint. You can configure Oscommerce in such a way as to charge tax on shipping and no tax on products and this can be configured differently for each country in the world !!! Bollywood Image Gallery
radders Posted August 5, 2003 Posted August 5, 2003 The European Commission wants to impose VAT on postage in order to 'level the playing field' between courier services and state-owned postage operators. Under the plan, EU members would have an option to apply VAT at reduced rates on packages weighing less than 2 kg. This sounds like a nightmare. Actually I'm still trying to get my head around VAT on postage. It seems to be the case that I have to pay VAT to a courier but not the Post Office. How then do I break out the VAT paid by a customer? Is there a way of entering different VAT rates for different methods of shipping? Please excuse my ignorance.
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