Quote:
Originally Posted by aka123
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.
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I see it as trade protectionism -- why can't the EU rely on their loyal willing to pay tax payers' attitude for the buyers to declare and pay the VAT on their foreign purchases?
How many people would pay the regressive tax voluntarily -- 18% to 27% VAT?
The truth is, that they (the EU), wants businesses worldwide to collect their taxes for them uncompensated for being the EU's tax collector -- the rest of the world should charge the EU tax man 28% of the tax collected as a fee
If EU sellers are not globally competitive because of their taxation laws then they should change their tax laws in the EU -- exempt online purchases for VAT.
There may be a bigger picture here; the taxman is forcing (perhaps unintentionally?) EU companies to find foreign markets and sell to non-taxable customers maybe? The Euro declines in value and the forgotten (online) sales in the EU are taxed.
This incentivizes export and foreign sales for the Euro Zone business community.