UK government plans 'Digital Services Tax' applied against Apple and other tech giants



  • Reply 41 of 42
    mcdave said:
    “Both Apple and Ireland are appealing the ruling.”

    - I’ll bet one’s appealing harder than the other.

    This kind of fix helps nothing, corporates should be paying tax in the country of sale if they have no overheads then the taxable income should be greater.
    It is really aimed at Amazon, as Apple have lots of retail stores in the UK, while Amazon trade almost exclusively online. The idea being that people feel Amazon is taking a lot of business away from UK high streets. Businesses in shops pay a lot of council tax, so adding this tax on to Amazon will make a difference in Amazon and shop prices fairer. The only thing I would question is, is 2% enough?
  • Reply 42 of 42
    crowleycrowley Posts: 5,935member
    MacPro said:
    mike1 said:
    rune66 said:
    In the UK, IMHO, Apple is not the main target. Those are Google and Amazon.
    Apple pays a significant amount of VAT, Business Rates and National Insurance (Employers Contribution) to the UK Treasury. Google issues Invoices from Dublin and claims that they do no selling of adverts in the UK and Amazon... well the less said about channelling everything via cough, cough licenses to Luxembourg the better.
    The same goes for Starbucks and McDonalds.

    Apple doesn't pay VAT. VAT is a consumer tax that companies collect on behalf of the state.
    Yes, but Apple primarily makes products and services that people buy and on which VATs are paid. Amazon, Google and Facebook do not (mostly) produce tangible products that are actually sold to consumers so therefore no VATs are collected.
    Right, and isn't that exactly what this is all about, hence this new tax is aimed at Google and FaceBook et alia, not Apple?
    iTunes for Europe "operates" out of Luxembourg, though I daresay you won't find many staff working there.
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