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 Lame Europe: Digital tax increase to take effect

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RR Phantom

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Lame Europe: Digital tax increase to take effect Vide
PostSubject: Lame Europe: Digital tax increase to take effect   Lame Europe: Digital tax increase to take effect Icon_minitimeFri Jan 02, 2015 3:05 am
Europe's tax showdown could be headed straight to people's wallets.

Lame Europe: Digital tax increase to take effect Article%20Lead%20-%20wide6460692612gr4rimage.related.articleLeadwide.729x410.12gr0u.png1420150889989.jpg-620x349

With the new year, a change in fiscal rules in the European Union is increasing the tax on many purchases of digital content like e-books and smartphone applications.

Under the new rules, first approved in 2008, the tax rate on digital services like cloud storage and movie streaming will be determined by where consumers live, and not whether the company selling the product has its European headquarters. Tax experts say Europe's revamped rules could add up to an extra $US1 billion ($1.22 billion) in annual tax revenue for European governments.

What remains unclear is who in the 28-country bloc will pay most of the bill.

"There inevitably will be a price change," said Richard Mollet, chief executive of the Publishers Association, a British trade body. "The question is whether retailers, publishers or customers will have to take on board any increase."

Read more: http://www.smh.com.au/business/world-business/digital-tax-increase-to-take-effect-in-europe-20150102-12gr0u.html#ixzz3NeJlLUSR
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