Quote:
Originally Posted by Kumabjorn
So if I understand this correctly, in most states goods are charged a sales tax (provided the state has a tax) and now they want to charge that on online shopping, including eBooks and music files. However, other legislation (mainly federal, perhaps?) treats eBooks and Mp3s as a service or rental, since it is a licens for usage?
In my mind this doesn't add up. Either it is a goods, and has to be treated like one, including the ability to re-sell it and loan it to someone, and in return the consumer has to accept getting to pay sales tax on it, or it is treated as a service, you can't resell it or loan it to someone, on the other hand you don't have to pay sales tax on it. I suppose my confusion is the basis for the pervalent litigation in the US.
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In the EU, ebooks are classified for VAT purposes as a service, but services are most assuredly liable for VAT.