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Big Tech to EU: "Drop Dead"
(www.eff.org)
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this post was submitted on 19 May 2024
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When you buy something, the seller pays a VAT tax (something about 17% to 23% of your purchase, depending on the country).
If I'm a French company and I sell something to a customer in Finland (we would be both in the EU) taxes would be paid in either France or Finland (it depends on the kind of thing I'm selling and the kind of customer).
If I understand correctly, they want to tax digital services in the place where the work is actually generated. So, in France.
Correct. Amazon for example: everything that is sold via Amazon in Europe is taxed in Ireland. Even if a product which is available on Amazon is produced in France, stored in a French Amazon warehouse and shipped to a French customer. Just because it's possible, they pay the reduced taxes in Ireland for such a deal. That needs to be fixed.
Ahh now I understand the reasoning, and I completely agree.
To be fair, some things are already taxed in the place where work is created, regardless of the company headquarters. E.g. event tickets (VAT is always applied in the country where the event is taking place)