24 March 2014 - 10:44am | posted by | 1 comment

Apple and Amazon hit with VAT ruling on UK downloads

Apple and Amazon hit with VAT ruling on UK downloadsApple and Amazon hit with VAT ruling on UK downloads

Apple and Amazon will no longer be able to dodge charging VAT on UK downloads after chancellor George Osborne moved to close a loophole which allowed the international giants to skip the 20 per cent tax.

Previous regulations allowed firms to charge very low foreign rates of VAT on UK purchases of music and book downloads, by routing purchases through subsidiaries in the likes of Luxembourg where taxes are as low as 3 per cent - much to the chagrin of their UK competitors.

Buried in the detail of the budget the Treasury said: "As announced at budget 2013, the government will legislate to change the rules for the taxation of intra-EU business to consumer supplies of telecommunications, broadcasting and e-services. From 1 January 2015 these services will be taxed in the member state in which the consumer is located, ensuring these are taxed fairly and helping to protect revenue."

It is estimated that the move could rake in £300m in additional revenues for the Treasury, but also spell the end of the 99p download.

Comments

26 Mar 2014 - 04:59
llian44103's picture

Maybe this is the piece of cake that bookshops have been waiting for?

0
0

Please sign in or register to comment on this article.

Latest Projects from the Profile Hub

Typosaurus - Website Spell Checker

27/05/2015
Spelling Errors. Extinct.  Are you a voracious verbivore or...

Cutting Through The Cards, Candy and Clutter with Savanna Serenades

25/05/2015
Valentine’s Day is a holiday that sees increased spending...

Search campaign increases revenue by 492%

21/05/2015
Hobbycraft had been investing in PPC for a while, but spend...

PG tips

21/05/2015
The definitive article Decades of evolutionary pack changes...

Raise a glass to Private Dining Room's online visibility

20/05/2015
Private Dining Rooms, an online venue finder, initially...