Quote:
Originally Posted by mr ploppy
Do the other ebook vendors dodge UK VAT as well, or is it likely to generate an automatic price war?
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Strictly speaking, Amazon don't dodge UK VAT. As a non-EU company, they're allowed to choose where to register for VAT in the EU, and they chose Luxembourg.
I suspect that the increase in electronic goods will lead to the tax authorities deciding that the tax to be paid should be the rate in the purchasor's coutry, not that of the seller.
And we'll then have the anomalous situation that the point of sale is the vendor's location, but the tax paid will be based on the purchasor's location.
And it'll be some years before things settle down....