Feeds

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

Ministers poised for sign-off

  • alert
  • submit to reddit

Intelligent flash storage arrays

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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.