4 ms·
I think one reason this is tricky because it's not easy to define where an online sale is happening.
by dontreact 9y ago
I think one reason this is tricky because it's not easy to define where an online sale is happening.
- dontreact 9y agoAnother reason would be that it could be argued that this unfair if they are selling products with very different margins in different countries.
- Maarten88 9y agoThat is what they argue now, they argue their margin in EU is almost zero. But because they transfer costs internally in any way they like (abusing the IP laws that they need to do business in the first place), they can make the profit appear in any country they want. If countries want to stop missing out on these taxes, I think they should just stop accepting the whole argument. If companies really accept lower margins in some country, they can also afford to pay a bit more taxes.
- dontreact 9y agoDoes this work for non-tech companies or other companies who really do have different margins in different countries? How do you decide who to enforce it for?
- Maarten88 9y agoThat is a solved problem. Online sales also pay VAT somewhere already.