RE: UKNM: EU Internet VAT

[David Simpson]

Try looking at it from a state revenue position - gotta get it from

somewhere!, it can't come as a surprise to anyone that as more transactions

are carried out over the web so the politicians want to jump in.


Adam Smith's "Canons of Taxation" have (pretty much) stood the test of

time - put simply he says that for a tax to be a 'good tax' :


1-The cost of collection must be low relative to the yield

2-The timing and amount to be paid must be certain to the payer

3-The means and timing of payment must be convenient to the payer

4-Taxes should be levied according to ability to pay

(In this case 1)No (and just imagine the cost of monitoring it !!!) , 2)Yes,

3)Yes-ish, 4)Depends on your p.o.v. but to all rational beings, No) - so

overall a resounding 'No'.


IMHO the real problem comes with the interference with the (very different)

mix of direct & indirect taxation needed for the characteristics of

different member states - the right rate for one will not be the right rate

for all (and different rates from state to state doesn't bear thinking

about).


David



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