or Connect
AppleInsider › Forums › Mobile › iPod + iTunes + AppleTV › British consumers face iTunes price hike after tax policy change
New Posts  All Forums:Forum Nav:

British consumers face iTunes price hike after tax policy change

post #1 of 55
Thread Starter 
Apple may be forced to increase the amount of Value Added Tax that it charges for iTunes music and video sales in the U.K. as Her Majesty's Treasury pushes to end tax loopholes that allow consumers to pay much lower rates on digital purchases.

iTunes


The new law, backed by Chancellor of the Exchequer and Second Lord of the Treasury of the United Kingdom George Osborne, would end a policy that allows Apple to sell downloads through EU countries like Luxembourg with VAT rates as low as 3 percent. Instead, Apple would have to levy the U.K.'s full 20 percent VAT for purchases in Britain, according to The Guardian.

"As announced at budget 2013, the government will legislate to change the rules for the taxation of intra-EU business to consumer supplies of telecommunications, broadcasting and e-services," an announcement from the Treasury reads. "From 1 January 2015 these services will be taxed in the member state in which the consumer is located, ensuring these are taxed fairly and helping to protect revenue."

The change is said to have the potential to raise government income from taxes on digital sales by as much as ?300 million ($494 million) each year.
post #2 of 55
It's an interesting move. Of course the amount collected will be less as people only have so much money to spend. Will it reserve the legitimate purchase trend?

It would of course also be fair when doing this to remove the VAT on eBooks. Currently they have VAT on them whereas printed books don't.
post #3 of 55

You gotta love British titles. "Chancellor of the Exchequer and Second Lord of the Treasury of the United Kingdom"!

 

One look at the title and you're compelled to do whatever he says!

post #4 of 55
Owning a Royal castle is not cheap, gotta find a way to pay for it.
post #5 of 55
This is a policy that will prove to be totally counterproductive. The english public are already squeezed by years of "austerity" measures (though none sees the politicians taking pay cuts). Adding VAT to downloads of music and apps will simply mean people will buy less which, in turn, will put less money into the chancellors pocket... it will also mean that people will start downloading music illegally again which will, sadly, hurt the artists, authors and developers. Perhaps a pay cut for those at the top of government would have been a better place to start to say nothing of reducing the mindless financial waste that all governments seem to be so good at!
post #6 of 55
books are sold at reduced rates (0% to 10%) in all union except UK and Denmark, but afaik, it is Amazon who do shells games with VAT not Apple. And music is normal rate everywhere.

Now UK will have a big problem to apply this I would think.
post #7 of 55

This article doesn't make sense.

 

If us Brits are going to be charged the UK VAT rate of 20%, purchases will be 3% cheaper.

 

Currently digital downloads from Apple originate in Ireland and are charged at the higher Irish VAT rate of 23% (throughout the whole of Europe).

 

AFAIK, Apple could charge the Luxembourg low digital VAT rate (after all iTunes SARL is based there) but they choose to appease the Irish taxman (who lets them off a hell of a lot of taxes in Ireland).

 

To the best of my knowledge Google and MS charge the VAT rate applicable in the country where the customer is though, so I doubt this will affect their customers full stop.

 

Amazon customers will no longer be paying the lower (6% eBook) VAT rate but I guess that Amazon was just pocketing the difference anyway and may decide to swallow the increase by not raising prices.

 

Personally I see this as a potentially positive move that will help to level the playing field for those firms that choose not to play tax shenanigans.

 

Edit-- from the Apple site

 

~"The VAT rate for Electronic Software Downloads or other Apple products classified as services under EU VAT law will be 23% as VAT is charged at the rate payable in the country where Apple Distribution International supplies such products, which is the Republic of Ireland"


Edited by hungover - 3/24/14 at 12:30am
post #8 of 55
Quote:
Originally Posted by lukei View Post


It would of course also be fair when doing this to remove the VAT on eBooks. Currently they have VAT on them whereas printed books don't.

 

The laws are somewhat asymmetric. Why pay VAT on an eBook when the original was 0% VAT rated?

 

Bizarrely you have to pay VAT on printing catalogues, I guess that the argument is that they are promotional products but you don't pay VAT for flyers (considered to be one off promotional products) or newspapers which increasingly seem to be half full of adverts. 

post #9 of 55
Quote:
Originally Posted by hungover View Post

This article doesn't make sense.

If us Brits are going to be charged the UK VAT rate of 20%, purchases will be 3% cheaper.

Currently digital downloads from Apple originate in Ireland and are charged at the higher Irish VAT rate of 23% (throughout the whole of Europe).

AFAIK, Apple could charge the Luxembourg low digital VAT rate (after all iTunes SARL is based there) but they choose to appease the Irish taxman (who lets them off a hell of a lot of taxes in Ireland).

To the best of my knowledge Google and MS charge the VAT rate applicable in the country where the customer is though, so I doubt this will affect their customers full stop.

Amazon customers will no longer be paying the lower (6% eBook) VAT rate but I guess that Amazon was just pocketing the difference anyway and may decide to swallow the increase by not raising prices.

Personally I see this as a potentially positive move that will help to level the playing field for those firms that choose not to play tax shenanigans.

Amazon will raise prices and whine about Apple causing it on their website, just like they did with eBooks.
Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
Reply
Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
Reply
post #10 of 55
Deleted
Edited by saarek - 3/24/14 at 4:46am
iPad, Macbook Pro, iPhone, heck I even have iLife! :-)
Reply
iPad, Macbook Pro, iPhone, heck I even have iLife! :-)
Reply
post #11 of 55
Quote:
Originally Posted by hill60 View Post


Amazon will raise prices and whine about Apple causing it on their website, just like they did with eBooks.


I don't think that will raise their prices. They would have known that the writing was on the wall and may have seen the tax differential as being a short term gain.

 

Prices are pegged against their competitors.  Those competitors that are UK based and playing the game fairly would be in a stronger position if Amazon hike their prices up.

post #12 of 55
Quote:
Originally Posted by mp1963 View Post

This is a policy that will prove to be totally counterproductive. The english public are already squeezed by years of "austerity" measures (though none sees the politicians taking pay cuts). Adding VAT to downloads of music and apps will simply mean people will buy less which, in turn, will put less money into the chancellors pocket... it will also mean that people will start downloading music illegally again which will, sadly, hurt the artists, authors and developers. Perhaps a pay cut for those at the top of government would have been a better place to start to say nothing of reducing the mindless financial waste that all governments seem to be so good at!

Absolutely!!
If you live in the UK you will know that the current British Government has done an immense amount of damage in the short term it has been in office. Selling off national asserts to connected friends at discount prices who make millions overnight. Selling off of our school buildings at low prices to connected friends (with offshore accounts) then renting them back at a higher rate, all legal fees paid by the tax payer. Selling off of the NHS anything that could potentially be profitable and leaving the costly services to the tax payer. The country is in an absolute mess.
post #13 of 55
Actually, you're completely wrong.

As well as an increase of five thousand pounds to the taxable allowance, record employment and falling unemployment, growth is also the highest it's been since the Labour Party left us bankrupt.

This move equates to a three percent cut in the UK as we currently pay the Irish sales tax rate of 20%

Along with tax cuts for the arts, alcohol and petrol, it all serves to make us a little better off.
post #14 of 55
Quote:
Originally Posted by hungover View Post
 

This article doesn't make sense.

 

If us Brits are going to be charged the UK VAT rate of 20%, purchases will be 3% cheaper.

 

Currently digital downloads from Apple originate in Ireland and are charged at the higher Irish VAT rate of 23% (throughout the whole of Europe).

...

Edit-- from the Apple site

 

~"The VAT rate for Electronic Software Downloads or other Apple products classified as services under EU VAT law will be 23% as VAT is charged at the rate payable in the country where Apple Distribution International supplies such products, which is the Republic of Ireland"

I just checked the Apple site and you are correct.

The question now is: Is Apple forced by European low to manage it that way or was Apple massaging the whole process to let us customers pay for Apple's tax cuts in Ireland? :\

post #15 of 55

Glad to see the government closing tax loopholes and levelling the playing field for UK-based companies.

post #16 of 55
Quote:
Originally Posted by hungover View Post

This article doesn't make sense.
If us Brits are going to be charged the UK VAT rate of 20%, purchases will be 3% cheaper.
Currently digital downloads from Apple originate in Ireland and are charged at the higher Irish VAT rate of 23% (throughout the whole of Europe).....
~"The VAT rate for Electronic Software Downloads or other Apple products classified as services under EU VAT law will be 23% as VAT is charged at the rate payable in the country where Apple Distribution International supplies such products, which is the Republic of Ireland"

Most quotes about Ireland lie. They are a convenience country with the goods being of 'no abode whatsoever'.
Apple seldom participate in contributing taxes when they can avoid it 100%


Who is the most evil, them or Google I'm unsure. A backdating law on tax for the big bad two would be quite a windfall.
post #17 of 55
Quote:
Originally Posted by nkhm View Post

Actually, you're completely wrong.

As well as an increase of five thousand pounds to the taxable allowance, record employment and falling unemployment, growth is also the highest it's been since the Labour Party left us bankrupt.

This move equates to a three percent cut in the UK as we currently pay the Irish sales tax rate of 20%

Along with tax cuts for the arts, alcohol and petrol, it all serves to make us a little better off.

And gambling.

The article accuses Apple of using the Luxembourg loophole but it doesn't - Amazon do.

There is a far more serious issue here though. How is the tax collected? Do companies outside the UK make quarterly submissions to the UK treasury? What if all European countries followed through? Would companies with websites have to make 27 VAT returns per quarter?

The only way to really fix this is to make all electronic goods taxable at the same rate.
I wanted dsadsa bit it was taken.
Reply
I wanted dsadsa bit it was taken.
Reply
post #18 of 55
Quote:
Originally Posted by copeland View Post

I just checked the Apple site and you are correct.
The question now is: Is Apple forced by European low to manage it that way or was Apple massaging the whole process to let us customers pay for Apple's tax cuts in Ireland? 1hmm.gif

You are now blaming Apple for paying more tax? When UK companies sell to Ireland the vat is 20%.
I wanted dsadsa bit it was taken.
Reply
I wanted dsadsa bit it was taken.
Reply
post #19 of 55
Quote:
Originally Posted by hungover View Post

"The VAT rate for Electronic Software Downloads or other Apple products classified as services under EU VAT law will be 23% as VAT is charged at the rate payable in the country where Apple Distribution International supplies such products, which is the Republic of Ireland"

iTunes downloads wouldn't be classified as services. This statement would refer to things like their financial services where VAT is charged on the repayments and controlled in part by Apple Distribution International in Ireland; not AppleCare though:

http://store.apple.com/uk-business/browse/campaigns/macleasing

If iTunes supplied from Ireland, the receipts would say Ireland instead of Luxembourg. It's not a 3% VAT rate in Luxembourg for music though, it's 15% for music, 3% for ebooks. Amazon uses the same setup:

"Sales of digital products and services including Kindle content, Amazon Apps, Software & Digital Games (including prepaid gaming cards), MP3 downloads, Cloud Player, and Cloud Drive are shown inclusive of Luxembourg VAT rates of 15% (3% for e-books). For customers based in Iceland, Norway or Switzerland, Amazon will charge local VAT in line with local VAT legislation."

https://www.amazon.co.uk/gp/help/customer/display.html?nodeId=502578

The reason to use Luxembourg is:

"Luxembourg has just half a million residents. But when customers across Europe, Africa or the Middle East — and potentially elsewhere — download a song, television show or app, the sale is recorded in this small country, according to current and former executives. In 2011, iTunes S.à r.l.’s revenue exceeded $1 billion, according to an Apple executive, representing roughly 20 percent of iTunes’s worldwide sales.

The advantages of Luxembourg are simple, say Apple executives. The country has promised to tax the payments collected by Apple and numerous other tech corporations at low rates if they route transactions through Luxembourg. Taxes that would have otherwise gone to the governments of Britain, France, the United States and dozens of other nations go to Luxembourg instead, at discounted rates.

“We set up in Luxembourg because of the favorable taxes,” said Robert Hatta, who helped oversee Apple’s iTunes retail marketing and sales for European markets until 2007. “Downloads are different from tractors or steel because there’s nothing you can touch, so it doesn’t matter if your computer is in France or England. If you’re buying from Luxembourg, it’s a relationship with Luxembourg.”"

http://www.nytimes.com/2012/04/29/business/apples-tax-strategy-aims-at-low-tax-states-and-nations.html?pagewanted=3&_r=0

It's not clear if the agreement is over the VAT rate or the income tax rate or both but this doesn't have to affect the prices of the songs because VAT is already assumed to be included. If songs are priced at 0.99 euros and there's 1m euros worth of sales, with Luxembourg taxes, the assumption is that this 1m euros represents ex-tax revenue x 1.15 so ex-tax revenue would be 870k euros. With UK taxes, ex-tax revenue would be 833k euros. Apple's cut would be 261k and 250k respectively, a pretty small drop.

If Apple wanted to maintain their revenue, they can increase their 30% cut of ex-tax revenue (to say 32%) or just take a small amount less money. Apple already charges more for songs in the UK anyway. They are sold at £0.99 so if you deduct 15%, you get £0.86 = $1.42. I'm sure Apple can absorb the difference in tax and maintain £0.99. They still have to be competitive with Amazon and they'll face the same changes.
post #20 of 55
Quote:
Originally Posted by hill60 View Post


Amazon will raise prices and whine about Apple causing it on their website, just like they did with eBooks.

 

Does it matter that it is true?

post #21 of 55
Quote:
Originally Posted by BestKeptSecret View Post
 

You gotta love British titles. "Chancellor of the Exchequer and Second Lord of the Treasury of the United Kingdom"!

 

One look at the title and you're compelled to do whatever he says!

As someone who lives in the UK, I wasn't even aware he was the Second Lord of the Treasury (or, for that matter, who the First Lord even is)...

post #22 of 55
As hungover said, I'm not sure where all these news articles are coming from. According to their website, they operate under EU VAT law which says they need to charge tax from the country they supply from, which is the Republic of Ireland. Thus the tax rate applicable to Electronic Software Downloads is 23% as is. Whatever happens, 23% is the maximum we will pay.

Source: http://store.apple.com/uk/help/payments
post #23 of 55
Quote:
Originally Posted by aBeliefSystem View Post


Most quotes about Ireland lie. They are a convenience country with the goods being of 'no abode whatsoever'.
Apple seldom participate in contributing taxes when they can avoid it 100%


Who is the most evil, them or Google I'm unsure. A backdating law on tax for the big bad two would be quite a windfall.

 

Where does Amazon fit in?

Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
Reply
Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
Reply
post #24 of 55
Quote:
Originally Posted by BestKeptSecret View Post

You gotta love British titles. "Chancellor of the Exchequer and Second Lord of the Treasury of the United Kingdom"!

One look at the title and you're compelled to do whatever he says!
Grand titles for widely unpopular people. The current Chancellor is one of the most reviled men in the country outside of prison.

censored

Reply

censored

Reply
post #25 of 55
Quote:
Originally Posted by DarkLite View Post
 

As someone who lives in the UK, I wasn't even aware he was the Second Lord of the Treasury (or, for that matter, who the First Lord even is)...


The Right and Honourable David William Donald Cameron, MP - Prime Minister of the United Kingdom and First Lord of the Treasury ;)

post #26 of 55
@Marvin. In the US, sales tax is NOT included in the price. In Utah, a 99cent song costs me $1.07.
post #27 of 55
Quote:
Originally Posted by Marvin View Post

iTunes downloads wouldn't be classified as services. This statement would refer to things like their financial services where VAT is charged on the repayments and controlled in part by Apple Distribution International in Ireland; not AppleCare though:

http://store.apple.com/uk-business/browse/campaigns/macleasing

If iTunes supplied from Ireland, the receipts would say Ireland instead of Luxembourg.

The reason to use Luxembourg is:

"Luxembourg has just half a million residents. But when customers across Europe, Africa or the Middle East — and potentially elsewhere — download a song, television show or app, the sale is recorded in this small country, according to current and former executives. In 2011, iTunes S.à r.l.’s revenue exceeded $1 billion, according to an Apple executive, representing roughly 20 percent of iTunes’s worldwide sales.

The advantages of Luxembourg are simple, say Apple executives. The country has promised to tax the payments collected by Apple and numerous other tech corporations at low rates if they route transactions through Luxembourg. Taxes that would have otherwise gone to the governments of Britain, France, the United States and dozens of other nations go to Luxembourg instead, at discounted rates.

“We set up in Luxembourg because of the favorable taxes,” said Robert Hatta, who helped oversee Apple’s iTunes retail marketing and sales for European markets until 2007. “Downloads are different from tractors or steel because there’s nothing you can touch, so it doesn’t matter if your computer is in France or England. If you’re buying from Luxembourg, it’s a relationship with Luxembourg.”"

http://www.nytimes.com/2012/04/29/business/apples-tax-strategy-aims-at-low-tax-states-and-nations.html?pagewanted=3&_r=0

Excellent catch Marvin. I gave a thumbs up to a previous poster who found that Apple was charging Irish rates for services. That was a good catch too except that he was incorrect about how Apple classifies song downloads so it didn't apply to iTunes.
melior diabolus quem scies
Reply
melior diabolus quem scies
Reply
post #28 of 55
Quote:
Originally Posted by chadbag View Post

@Marvin. In the US, sales tax is NOT included in the price. In Utah, a 99cent song costs me $1.07.

Thanks for clarifying, some people reported they get some, others don't:

http://forums.macrumors.com/showthread.php?t=663822

Still, the UK prices are already well above whatever tax rate is applied in the US at $1.43 equivalent so there's plenty of room to absorb some increase.
post #29 of 55
Quote:
Originally Posted by hungover View Post
 

This article doesn't make sense.

 

If us Brits are going to be charged the UK VAT rate of 20%, purchases will be 3% cheaper.

 

Currently digital downloads from Apple originate in Ireland and are charged at the higher Irish VAT rate of 23% (throughout the whole of Europe).

 

AFAIK, Apple could charge the Luxembourg low digital VAT rate (after all iTunes SARL is based there) but they choose to appease the Irish taxman (who lets them off a hell of a lot of taxes in Ireland).

 

 

When I purchase from iTunes / Mac App Store in the UK I get an invoice from Lux. not Ireland

iTunes S.à r.l.

post #30 of 55
Quote:
Originally Posted by Crowley View Post


Grand titles for widely unpopular people. The current Chancellor is one of the most reviled men in the country outside of prison.

Not sure why, he is certainly doing a better job than his Labour predecessors. Still, I guess his is the sort of job whereby you're unpopular by default.

iPad, Macbook Pro, iPhone, heck I even have iLife! :-)
Reply
iPad, Macbook Pro, iPhone, heck I even have iLife! :-)
Reply
post #31 of 55
Quote:
Originally Posted by Crowley View Post

Grand titles for widely unpopular people. The current Chancellor is one of the most reviled men in the country outside of prison.

By who? By Labourites with very short memories of the total mess Brown and Balls left this country in?
post #32 of 55
Quote:
Originally Posted by saarek View Post
 

Not sure why, he is certainly doing a better job than his Labour predecessors. Still, I guess his is the sort of job whereby you're unpopular by default.


Is he? The UK suffered a double-dip recession, and only narrowly avoided a triple-dip recession, under his watch. The UK has also recovered far slower from the global economic downturn than many of its major international rivals. What's he done of any positive value? Cut the tax on bingo?

 

How many years can a government be in power before the 'blame the last government' excuse wears thin?

post #33 of 55
Quote:
Originally Posted by BestKeptSecret View Post

You gotta love British titles. "Chancellor of the Exchequer and Second Lord of the Treasury of the United Kingdom"!

One look at the title and you're compelled to do whatever he says!

It's the Lord High Executioner you have to watch out for! 1wink.gif
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
post #34 of 55
She's has enough Jems and cash what more does she want? You guys are getting ripped of cause i live in South Africa and pay an average price of R9.99 which $0.92 £0.56
post #35 of 55
I still don't see how the UK hopes to collect this? Anybody got ideas?
I wanted dsadsa bit it was taken.
Reply
I wanted dsadsa bit it was taken.
Reply
post #36 of 55
Quote:
Originally Posted by asdasd View Post

I still don't see how the UK hopes to collect this? Anybody got ideas?

It's a European-wide agreement:

http://www.hmrc.gov.uk/posmoss/index.htm?WT.ac=VAT_POSjan

"This is a significant change and in order to work out the country in which VAT due must be paid, you will need to keep additional information that was not required before. To make this as straight forward as possible, the EU Member States discussed and agreed what a business needs to do and the records that it must keep.
  • if the service is provided through a telephone box, a telephone kiosk, a wi-fi hot spot, an internet café, a restaurant or a hotel lobby, the consumer location will be the place where the services are provided
  • if the service is supplied on board transport travelling between different countries in the EU (for example, by boat or train), the consumer location will be the place of departure for the journey
  • if the service is supplied through an individual consumer’s telephone landline, the consumer location will be the place where the landline is located
  • if the service is supplied through a mobile phone, the consumer location will be the country code of the SIM card
  • if a broadcasting service is supplied through a decoder, the consumer location will be the postal address where the decoder is sent or installed

if the bullets above do not correctly identify where the consumer of your services is located you can select the correct consumer location. To support this, you will need to provide three pieces of non-contradictory commercial evidence (for example, evidence of the consumer’s billing address, their bank details, their internet protocol (IP) address).

To save you having to register for VAT in every EU Member State, where you supply broadcasting, telecommunications and e-services, you may opt to use the VAT Mini One Stop Shop online service (VAT MOSS)"

Pretty much every e-commerce site tracks billing address and IP, likely phone numbers too. All they have to do is total sales by region and note them down in a single tax return and they will be told the total VAT due and it will be sent to each country for them.

Companies will be required by law to do this just like they have to follow proper accounting rules just now. It shouldn't really be much of a burden to companies and the taxes are still paid by the buyers anyway.
post #37 of 55
Quote:
Originally Posted by Marvin View Post

Thanks for clarifying, some people reported they get some, others don't:

 

The applicability of tax to iTunes is state dependent. For example, in California, tax is only charged on tangible items, so downloads are tax-free. Other states have specific laws which tax downloads.

post #38 of 55
Quote:
Originally Posted by Marvin View Post


It's a European-wide agreement:

http://www.hmrc.gov.uk/posmoss/index.htm?WT.ac=VAT_POSjan

"This is a significant change and in order to work out the country in which VAT due must be paid, you will need to keep additional information that was not required before. To make this as straight forward as possible, the EU Member States discussed and agreed what a business needs to do and the records that it must keep.
  • if the service is provided through a telephone box, a telephone kiosk, a wi-fi hot spot, an internet café, a restaurant or a hotel lobby, the consumer location will be the place where the services are provided
  • if the service is supplied on board transport travelling between different countries in the EU (for example, by boat or train), the consumer location will be the place of departure for the journey
  • if the service is supplied through an individual consumer’s telephone landline, the consumer location will be the place where the landline is located
  • if the service is supplied through a mobile phone, the consumer location will be the country code of the SIM card
  • if a broadcasting service is supplied through a decoder, the consumer location will be the postal address where the decoder is sent or installed

if the bullets above do not correctly identify where the consumer of your services is located you can select the correct consumer location. To support this, you will need to provide three pieces of non-contradictory commercial evidence (for example, evidence of the consumer’s billing address, their bank details, their internet protocol (IP) address).

To save you having to register for VAT in every EU Member State, where you supply broadcasting, telecommunications and e-services, you may opt to use the VAT Mini One Stop Shop online service (VAT MOSS)"

Pretty much every e-commerce site tracks billing address and IP, likely phone numbers too. All they have to do is total sales by region and note them down in a single tax return and they will be told the total VAT due and it will be sent to each country for them.

Companies will be required by law to do this just like they have to follow proper accounting rules just now. It shouldn't really be much of a burden to companies and the taxes are still paid by the buyers anyway.

 

Thanks. I don't remember other countries in the EU doing this. But they must. What this means is that in sales tax the EU seems to be more harmonious than the US, as far as I can see. The  VAT Mini One Stop Shop would be essential to the small business.

 

EDIT:

 

Actually now that I think, i do remember that the EU was harmonising VAT in 2015. Heres the Irish version:

 

http://www.revenue.ie/en/tax/vat/moss/index.html

I wanted dsadsa bit it was taken.
Reply
I wanted dsadsa bit it was taken.
Reply
post #39 of 55

The EU should do this with corporation tax, decide a tax and hand 12 percent to the EU and 12 percent to the country of "domicile".

I wanted dsadsa bit it was taken.
Reply
I wanted dsadsa bit it was taken.
Reply
post #40 of 55
Quote:
Originally Posted by mp1963 View Post

This is a policy that will prove to be totally counterproductive. The english public are already squeezed by years of "austerity" measures (though none sees the politicians taking pay cuts). Adding VAT to downloads of music and apps will simply mean people will buy less which, in turn, will put less money into the chancellors pocket... it will also mean that people will start downloading music illegally again which will, sadly, hurt the artists, authors and developers. Perhaps a pay cut for those at the top of government would have been a better place to start to say nothing of reducing the mindless financial waste that all governments seem to be so good at!

Or maybe a pay cut at Apple?
And oh, Apple will sell less, but not 7 times less, so yes, the UK will have its fair share.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPod + iTunes + AppleTV
AppleInsider › Forums › Mobile › iPod + iTunes + AppleTV › British consumers face iTunes price hike after tax policy change