There are a couple of issues here, but I thought I would share a story that,
IMO, frames the issue pretty well.
We received a long memo from our (big 5) auditors re: the European Union
decision to levy VAT on all online purchases inside the EU, whether the
vendor was located inside the EU or not. There were three or four pages
detailing the need to levy VAT as huge inequities were faced by offline
retailers trying to compete with online retailers, and the further inequity
of levying VAT only on domestic online retailers relative to those located
outside the EU. In the last paragraph they calmly noted that neither the EU
or they had any idea how they would actually collect the tax or enforce the
ruling!
This stuff has a long way to go.
Regards
Elliot Noss
----- Original Message -----
From: <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Saturday, September 16, 2000 6:44 AM
Subject: Domain Name - Taxes
> Discuss List:
>
> I seem to be the only one surprised or concerned about the
> taxes (17.5%) on the .uk domain names. My understanding
> (and I'm sure I'll be chastised if I'm wrong) :) is that anyone
> selling a .uk domain name will be taxed on the sale (the cost of
> which is passed on to the buyer) and the new owner of the
> name is taxed on everything he sells on his website.
>
> (following websites provided courtesy of SAllan...thanks)
> http://www.ad.ic.ac.uk/finance/manual/vat.htm
> http://www.netaccountants.com/taxsummary/taxdata-vat.html
>
> Does this mean there is a possibility that all domain names
> other than .com, .net, and .org will eventually be monitored
> for sales taxes by the country in which the domain name
> originates...with .com, .net, and .org eventually being taxed
> by the new world government that's being organized in Europe?
>
> Can't wait to follow this thread.
>
>
> Russ
>
>
>
