Tax Hotline
December 18, 2001
EU Moves Towards E-Commerce Taxation
The United Kingdom has agreed as a member of the European Union (EU) in moving towards an agreement on e-commerce taxation with regards to a tax on video downloads and other digital products purchased and delivered via the Internet. The member states will now have 18 months to incorporate the directive into national law.
EU has decided that non-EU businesses will only be obliged to register in one member state, as opposed to in all fifteen of them. That country will then collect the VAT on the purchases and remit it to the purchaser's country of residence. However, there are fears that this could cause complications in terms of additional administration and compliance, as VAT rates vary widely across Western Europe.
Britain withdrew its opposition to the law following an agreement to revisit and streamline the legislation in three years time but however as a precondition it is required that agreement must be formally drafted and approved at a forthcoming meeting.
Disclaimer
The contents of this hotline should
not be construed as legal opinion. View detailed disclaimer.
This hotline does not constitute a
legal opinion and may contain information generated
using various artificial intelligence (AI) tools or
assistants, including but not limited to our in-house
tool,
NaiDA. We strive to ensure the highest quality and
accuracy of our content and services. Nishith Desai
Associates is committed to the responsible use of AI
tools, maintaining client confidentiality, and adhering
to strict data protection policies to safeguard your
information.
This hotline provides general information
existing at the time of preparation. The Hotline is
intended as a news update and Nishith Desai Associates
neither assumes nor accepts any responsibility for any
loss arising to any person acting or refraining from
acting as a result of any material contained in this
Hotline. It is recommended that professional advice
be taken based on the specific facts and circumstances.
This hotline does not substitute the need to refer to
the original pronouncements.
This is not a spam email. You have
received this email because you have either requested
for it or someone must have suggested your name. Since
India has no anti-spamming law, we refer to the US directive,
which states that a email cannot be considered spam
if it contains the sender's contact information, which
this email does. In case this email doesn't concern
you, please
unsubscribe from mailing list.
|