Semkhet
Spartan Industries Triumvirate.
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Posted - 2008.02.28 11:17:00 -
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Edited by: Semkhet on 28/02/2008 11:20:21
Originally by: Akita T I have heard from several distinct sources (none of them experts, so the validity is questionable at best) that the EU has reversed some time in the past the VAT directive regarding purchases of electronic services.
I have absolutely no idea wether this is true or not, and to be honest, my "1337 g00gle skillz" have failed me in my search. BUT, in case this IS true (somebody, link, please, if you can find it), then shouldn't CCP seriously rethink their pricing scheme ?
So... anybody know better ? Is this reversal true or not ? And if yes, when did it go into effect (or will go into effect) ?
That's what you are looking for. I had in the past a clash with a company that billed me a reservation and when I cancelled, they didn't want to refund according to the rights I enjoy under the law which govern my country of residence in the EU and answered arrogantly that EU law didn't apply in the US. Yeah right, like if you buy a trip to NY from Germany, it's german law which will apply in NY... . The company was based in the USA, but operates all over the EU.
Since the transaction took place on the net, checked the relevant legislation and found out that they were operating illegaly within the EU since they didn't have a due VAT registration. Needless to say, getting back to them, I suddenly got my funds back no questions asking
The relevant info you're looking for: European Value Added Tax (VAT) and the Internet. If you want more information just Google "Council Directive 2002/38/EC".
Excerpt:
The EU "E-Business Directive" (Council Directive 2002/38/EC) came into effect on 1st July 2003. The effect of this directive is to implement the imposition of VAT in on Internet delivered information or services within the EU. This amounts to a tariff of between 13 and 25 per cent on items such as software or music downloads, any transactions as part of online auctions and subscriptions to internet service providers, sold over the internet anywhere within the European Union.
This Directive applies to non-EU companies and thus if your company is based outside the EU and providing Internet delivered information or services within the EU you should read this as failure to register and account for VAT could render you or your company liable to criminal prosecution for tax evasion, money laundering, false accounting or similar offences.
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