Wednesday, December 05, 2007

They will find a way to get your money

The European Union agreed Tuesday to sweeping changes to the way electronic services are taxed after Luxembourg finally agreed to a deal to end the perks enjoyed by its e-commerce industry - but not until 2015.
Plans to apply sales tax in the country in which services are consumed, rather than the location of the company that sells them, are the latest assault on Luxembourg's ability to act as a tax haven.
But the dispute also raised issues about how the EU should adapt its tax regime to a world in which more services are bought and sold in cyberspace.
With its low rates of sales tax, or value added tax, Luxembourg has attracted many of the biggest names in online sales, including companies like, Skype and PayPal.

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