Quote:
Originally Posted by HarryT
Only applies to ebooks and MP3s, Jack. At the moment they're being charged at the Luxembourg VAT rate of 3%. From 1st Jan 2015, all "downloaded" purchases have to charge the VAT rate of the customer, not the supplier. Physical goods already are. Doesn't just affect the UK; it will apply in all EU countries.
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Wow, 20% sounds really high, but without knowing the taxing structures it is impossible to tell. Here in the USA we have way too many taxing authorities including local cities, school districts, counties (shires or parishes), states, the federal (national) government, and a few others. Add to that the import/export taxes and fees that are added to the price of goods before we even purchase them, and we might be paying that much too. Some items, like liquor and tobacco, have extra high taxes added, but you don't notice those taxes because they are simply added to the price without designating it as a tax per se. Needless to say I guess there is universal disdain of the tax man (exchequer).