July 01, 2003

U.S. online suppliers to levy EU tax

More taxes, courtesy of the European Union:

Companies in the United States and elsewhere selling goods online to customers in the European Union starting today will no longer be able to escape taxes.
Under a new EU directive, a value-added tax will be levied on all online purchases made by a resident of the European Union, regardless of where the supplier is based.
The new rules will plug a loophole in the system that exempted U.S. firms while their European rivals were forced to account for the tax.
The directive was adopted in May last year by EU member states, which rejected U.S. government arguments that e-commerce should be given more time to bed down before it attracts VAT. Online purchases in the United States remain tax-free.