EU Will Tax Foreign Downloads7 May, 2002 By: Hive News
The European Union (EU) dealt a blow today to companies that hope to offer video-on-demand in Europe over the Internet, approving a measure May 7 that would tax EU-based sales of goods and downloads.
EU countries already pay a tax on e-commerce, but American and Asian companies have been exempt. European companies have complained that puts them at a disadvantage.
Under the new plan, American companies will pay tax rates based on the country in which the product is downloaded.
The EU ministers asked that all member countries have the new tax on their books by July 1, 2003.