Pascal_slith
Posts: 1651
Joined: 8/20/2003 From: back in Commiefornia Status: offline
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quote:
ORIGINAL: Chuck B. Hi Pascal, Sorry, but you are wrong about that. The following text is taken from I post I did a while ago in the Korsun forum about this issue: "Furthermore, the explanation "Information about VAT" doesn't really make sense. Digital River obviously tried to implement the new VAT regulation of the EU Directive 2002/38/EC. Under this Directive, any B2C transaction of electronically supplied services (Annex L of the Directive list "Supply of software and updating thereof" inter alia) of a Non EU supplier is subject to VAT "at the rate of the country where the customer resides". That would ALWAYS be the country where the (private) customer has residency. Any transaction of a EU based supplier to a (private) customer inside the EU is ALWAYS subject to the VAT of the country where the SUPPLIER resides. So the only situation in which the "Information about VAT" would make sense is the one in which all sales to Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Spain, Sweden, and UK are made by a business entity that is located in any EU member state while all the sales to the other EU countries are made by a different business entity that is located outside the EU." So, since last year (July 1st), Non-Eu based suppliers ARE bound to charge VAT. If you talk about the question, if they can be ENFORCED to do so ... well, that's another question. Sorry to say that, but it seems that the thesis of your wife was beaten by the European legislator Chuck The directive does not state that it is the obligation of the non-EU supplier to collect the VAT. It only says the transaction is subject to VAT. It is the resident of the EU country that has to pay the VAT. Thus if I am a resident of an EU country and buy a book at Amazon.com in the US, it is up to me to pay VAT when the package goes through customs. Same for software, no matter what the transmission method. The legal domain of the EU cannot go beyond its borders.
< Message edited by Pascal -- 7/6/2004 6:21:08 PM >
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So much WitP and so little time to play.... :-(
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