Because almost everything would suddenly cost more, unless literally every company hypothetically absorbed the VAT increase as well. It wouldn't just affect Apple!
That's my point. That is what destroys the "Apple should absorb it" argument.
Because almost everything would suddenly cost more, unless literally every company hypothetically absorbed the VAT increase as well. It wouldn't just affect Apple!
I have to pay taxes on the things I purchase from the iTunes and App Store so why shouldn't people in the UK have to pay taxes. No sympathy from me.
Don't matter to me, I live in the U.S. Sorry UK
Please update the article with a correction. FT says 3% rate is only for ebooks. VAT rates for other digital downloads in Luxembourg is 15%, much closer to the UK rates.Digital download retailers such as Apple and Amazon presently avoid the UK's 20% VAT by selling from countries such as Luxembourg where the tax rate is only 3%.
That's my point. That is what destroys the "Apple should absorb it" argument.
I prefer it that way. I live in SC currently. I get an email every January telling me how much I bought that I need to claim on my taxes. I do, but know I am in the small minority who does so. We all, regardless amazon collecting the tax or not, are required to pay this tax. If amazon were to collect in every state, it would be best. Also, allows for a more fair environment for local businesses.
Why would you riot? You aren't paying it in your example, Apple is.
They had a duty to pay more than was legally required?
Why would you riot? You aren't paying it in your example, Apple is.
Don't feel bad, UK. Many here in the US know your pain. I live in New York State, which a while back instituted the "Amazon tax", making us one of the few states that actually taxes Amazon purchases. New York - the state that never met a tax it didn't love.
The UK is such a joke.
Interesting that the UK government actually have the power to do this, assuming it's at odds with EU legislation.The Guardian said:The budget document 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."
They were required by law to pay more, they dodged it using loopholes.
Ok, let's play this game. App is £10. Currently, developer gets £7 and Apple £3. Under 1-Jan-2015 laws, and your proposal, Apple should, from their £3 profit, pay the £2 tax. Ok, the still make £1. What, then, stops the government from stating the VAT is 40% starting 1-Jan-2016. Should Apple then absorb that loss, too? So charge the customer £10, pay the developer £7, pay the government £4 and write off that £1 loss. Yeah, great idea.
This is going to come to the states soon enough. It is part of the problem that needs to be addressed because the laws have not kept up with the times.
i feel that tax avoidance by companies like apple, amazon and starbucks is diabolical,
I have to pay taxes on the things I purchase from the iTunes and App Store so why shouldn't people in the UK have to pay taxes. No sympathy from me.
Since I assume that you have lived in the UK (currently, or at some time) for some considerable period of time (otherwise the post would be...ah...ill considered), could you expand on the comment and explain why the UK is a joke.
Why should Apple absorb the VAT tax? Should apple absorb the U.S sales tax too?
It's not a case of UK people not paying tax. The single market across the EU states tax is paid at the place of purchase. The Apple Store sells goods out of Luxemboug and we therefore pay tax at their rates on our purchases.
If the iTunes store was in the UK we would pay UK tax but it isn't.
Osborne and Cameron want to change the EU single market to remove that and make consumers across the Union pay VAT in the country they live, not the country of purchase.
The UK is such a joke.
I'm a British citizen and I have lived there, thank you.
I could go on about a lack of rights, censorship in the extreme, lack of privacy, crime, ill-conceived immigration policies, and astronomically high taxes...but that'd be too easy.
Why don't you explain to me why it's not a joke?
They were required by law to pay more, they dodged it using loopholes. How would you like it if you ran a small company and paid all your taxes, but Amazon paid next to none in your country despite trading there? Same thing.
Interesting that the UK government actually have the power to do this, assuming it's at odds with EU legislation.
Presumably this means that UK-based companies selling e-services abroad will no longer be paying UK VAT on those sales? But they will be responsible for charging the correct sales tax for each one of the 28 EU states, and channeling that money to the appropriate Treasury, dependent upon where the buyer is located? I don't see the alternative: it *has* to be a reciprocal arrangement.
That'll make life fun for smaller e-businesses.