UKNM: RE: EU Internet VAT

[John Braithwaite]

There are a lot of concerns - for example the RIP bill, but I hope that the

government will see sense and realise what a disaster this would be.


My main concern is a related rumour to charge VAT around the world according

to LOCAL rates. This is in order to get round every ecommerce company

hosting their servers on the Isle of Man (or Jersey, Monaco etc.) and paying

no tax.


However this would create a ludicrous situation where no customer is clear

what they are going to pay for any given product until the very end of the

shopping basket and it would require a very complex addition to every

ordering mechanism world-wide that is constantly flexible: Gordon Brown

announces a VAT increase and EVERY company with a website selling into the

UK has to change their 'table' accordingly. And how would we collect those

taxes?


It reminds me of those numbskulls at Oftel: Making all Londoners change

their numbers again without realising that convergence is around the corner

and will result in the total amount of numbers decreasing in the foreseeable

future.


How do these people manage to put on their clothes in the morning?



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