UK e-book prices to rise from 1st January 2015

[Ghitulescu]

Originally Posted by HarryT

Tax evasion is a serious criminal offence, Jon. That really wouldn't be a terribly good idea.

If so, why all companies do it?

[HarryT]

Originally Posted by Ghitulescu

If so, why all companies do it?

As stated at the start of this thread, Ghitulescu, the whole point of this change in the law is to close a loop-hole in EU tax-law, which currently allows multi-national companies to avoid paying large amounts of VAT by basing themselves in low-tax countries such as Luxembourg.

[pdurrant]

Originally Posted by Ghitulescu

If so, why all companies do it?

All companies avoid tax when they can. They are required to do so by their duty of care to their shareholders.

Avoiding tax is reducing your tax bill within the law.
Evading tax is reducing your tax bill by illegal means.

[Rizla]

I remain unable to see what is so controversial about charging a world-spanning corporation a decent level of tax. Individuals have to pay tax, so why not Amazon? It's not like Amazon provides well-paying jobs.

The method the EU has used to apply tax to Amazon is of course absurd. Treating tiny online retailers with the same taxation scheme is idiotic. Shame.

One thing I'm not clear about is whether this "tax" only relates to digital products. Does this mean that Amazon will only have to charge higher rate VAT on e-books and music, but not on physical products?

[HarryT]

Originally Posted by Rizla

The method the EU has used to apply tax to Amazon is of course absurd. Treating tiny online retailers with the same taxation scheme is idiotic. Shame.

It has provided a level playing-field. You've been going on for years about how unfair it is that Amazon are treated differently to small businesses, and now you seem to be complaining how unfair it is that Amazon are being treated the same as small business . You're a difficult man to please.

One thing I'm not clear about is whether this "tax" only relates to digital products. Does this mean that Amazon will only have to charge higher rate VAT on e-books and music, but not on physical products?

Physical goods are already charged at the buyer's VAT rate (provided that the seller is VAT-registered in the buyer's country). This law brings digital goods in line with physical ones.

[Little.Egret]

Originally Posted by Laine

I am in Australia. I buy ebooks from Mills & Boon U.K. I get charged 20% VAT. In Australia our GST is 10%. What I think will happen {...}

Hee !

What will probably happen is that Mills & Boon U.K. will charge the same price but keep all the money, since none of it is due to any EU tax office.

Now if the Australian GSA folk can figure out how to get at the money ...

[Rizla]

Originally Posted by HarryT

It has provided a level playing-field. You've been going on for years about how unfair it is that Amazon are treated differently to small businesses, and now you seem to be complaining how unfair it is that Amazon are being treated the same as small business . You're a difficult man to please.

From reading this thread, as I understand it, these new laws are complicated, and a small company will have greater difficulty negotiating them than a large company will. I imagine some small companies may even choose to shut down. I fail to see how that is a level playing-field. That seems to be an ongoing point in this thread. I fail to see what is controversial.

I'm sorry to hear you feel I "go on." I sometimes have an opinion that differs from others. I endeavor to remain polite.

[HarryT]

Not suggesting for an instant that you haven't been polite, Rizla. But I do find a certain irony in the fact that your often-expressed wish that Amazon should be treated the same as small companies having now been granted, you're now saying that small companies should be treated differently to Amazon. First you want a level playing-field and then, having got one, you no longer want it!

[pdurrant]

I wanted Amazon to have a level playing field with other big companies like WH Smiths. It's ridiculous that there's no minimum turnover before requiring registering for the MOSS scheme

[fjtorres]

What (some) people really wanted was a law that *only* applied to Amazon.

Level playing field or fairness isn't really the objective.

[murg]

Originally Posted by fjtorres

What (some) people really wanted was a law that *only* applied to Amazon.

Level playing field or fairness isn't really the objective.

Clearly, by setting the min sales at $0 for being included in this scheme, this is not a 'Get Amazon' scheme, but a 'Get Everybody' scheme.

I think that someone is just using the phrase 'Amazon tax' as a way of massively increasing the taxable footprint of the EU.

[fjtorres]

Originally Posted by murg

Clearly, by setting the min sales at $0 for being included in this scheme, this is not a 'Get Amazon' scheme, but a 'Get Everybody' scheme.

I think that someone is just using the phrase 'Amazon tax' as a way of massively increasing the taxable footprint of the EU.

I wasn't referring to the politicians.

*Their* agenda is openly about revenue generation, given the state of most non-german economies on the continent.

[DuckieTigger]

Originally Posted by fjtorres

I wasn't referring to the politicians.

*Their* agenda is openly about revenue generation, given the state of most non-german economies on the continent.

Why are you singling out german economies now? Is Germany special somehow?

[thewitt]

Apple just sent out an email saying iTunes book revenue to authors would be dropping due to the new VAT tax implementation, so they will force us to increase prices manually to EU customers or eat the tax ourselves.

[DuckieTigger]

Originally Posted by thewitt

Apple just sent out an email saying iTunes book revenue to authors would be dropping due to the new VAT tax implementation, so they will force us to increase prices manually to EU customers or eat the tax ourselves.

That is just beeing lazy to keep the exact same prizes to the customer and then fudging the numbers later for tax paying purposes. Are you also going to get a statement on how many book sales went to each country in the EU and each different sales price?

So Apple decides to apply flexible prices and they are the ones that are trying so hard for no discount agency pricing.