Quote:
Originally Posted by Barry-xlovecam
You make a declaration on your annual state income tax return.
There is no treaty -- There is only an OECD dictate and an EU interpretation. The EU law in unenforceable in any US Court jurisdiction. The EU is relying on foreign businesses voluntary taxation compliance -- voluntary taxation compliance which you have previously said is silly 
All sales and VAT taxes are regressive. The lower your income is the greater percentage of your income is used to pay these consumption taxes. |
"These measures mean that the EU became the first significant tax jurisdiction in the world to develop and implement a simplified framework for consumption taxes on e-services in accordance with the principles agreed within the framework of the Organisation for Economic Co-operation and Development (OECD)."
VAT on electronic services - European commission
And there is a shit load of treaties between EU and USA. EU law is enforceable in US if agreements and treatys say so.
"How will this digital VAT compliance be policed for overseas merchants selling into Europe?
Andrew Webb (AW): The rules have actually been longstanding, since 2003. If you are, for example, an American digital service supplier to the EU, then you should be already registered for the non-Union MOSS scheme. In the UK, currently, this is called the VAT on eServices (VOES) scheme. This scheme becomes the non-Union scheme on January 1, 2015.
There is already an obligation to level the playing field. The fact that you are in America or China, the obligation and requirement is the same.
What we [HMRC] and other EU tax authorities are doing is if we found that one of these businesses is non-compliant then through treaties arrangements that we have with the jurisdictions, through information exchange or debt recovery, we would then approach the authorities in those other states to take action to help us to get the debt paid.
Those arrangements are going to be reinforced, and strengthened, effectively in the coming months and years to make sure that there aren’t jurisdictions out there where someone could effectively hide and make those supplies without properly declaring."
Digital VAT compliance: how EU will deal with U.S. companies
About the regressive tax, we were talking about business and the impacts to it. In that concept regressive tax is a tax that is kinda sale discount where you get cheaper per unit, the more you buy. If you mean VAT, then say it, not some regressive shit.