Quote:
Originally Posted by Barry-xlovecam
Basically that. It's the same as charging the buyer's State Sales Tax and having to remit the right amount (%) to a payment site in a selected one state -- that idea. But, the EU is claiming extraterritorial jurisdiction on digital sales for any world country to its EU citizens.
Comparable: That EU businesses would have to charge USA State Sales Tax on its sales to USA residents and remit the same to some super aggregation agency. (Reversal of principle.)
I am not sure if it is protectionist or simply a tax grab ...
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There are two main elements in this: within EU and outside EU.
One idea behind this is to close the gap that US business doesn't charge VAT and EU businesses do. Now everyone charges VAT for EU customers. And still, no one charges VAT for US sales (web sales outside states). So basically, it is now more even playground, that is one purpose of the law.
Within EU; countries don't want to leach the VAT to other countries from the sales their own citizens make.