Feeds

Boston E-Party looms, as EU set to tax online sales

Ministers poised for sign-off

  • alert
  • submit to reddit

Boost IT visibility and business value

The European Council of Economic and Finance ministers (ECOFIN) is set to agree the imposition of Value Added Tax on online sales today. ECOFIN agreed this in principle in December, but after today's sign-off it will have to go through the European Parliament, after which legislation will go into force.

ECOFIN has bigger fish to fry today than VAT - aside from lunch, the agenda concerns updates on the economic Stability and Growth Pact, the Euro transition and the budgetary framework for European enlargement. But it's made its mind up already anyway.

At the December meeting it invited EU member states "to work to develop and implement as soon as possible an appropriate electronic mechanism on a non-discriminatory basis for charging, declaring, collecting and allocating tax revenues in connection with e-commerce supplies with taxation in the place of consumption."

Today it will agree a "temporary interim solution, time-limited to three years, to be extended, for practical reasons, by the [ECOFIN] Council acting unanimously on a proposal from the Commission, based upon the Swedish Presidency compromise incorporating a simplified revenue reallocation mechansim and a commitment to the introduction of an electronic solution as soon as possible and no later than three years after implementation of the Directive."

As you will no doubt detect, we appear to recognise that we are not currently in a position to cut loose the full-scale, all-singing, all-dancing, all-taxing electronic version, but that we are sufficiently hazy about software development to believe that, er, it'll be OK in about three years.

You will find a brief explanation of how Europe proposes to enrage US vendors and trade officials, possibly triggering an electronic Boston E-Party, here. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.