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VAT means taxes the EU consumers prices, not on Google's profits.
by FirmwareBurner 2y ago
VAT means taxes the EU consumers prices, not on Google's profits.
- cjrp 2y agoTrue, but it's collected by Google and passed to the relevant government. So it would be similar (they just wouldn't add it to the price, as VAT is).
- esperent 2y ago> it's collected by Google Not the case in at least some EU countries. Businesses are responsible for calculating the VAT and paying it themselves.
- esperent 2y agoFrom a quick search I cannot find any examples of tariffs applied as a tax on a specific company's profits. They are commonly applied as a surcharge (charge on top of the business or consumer price of a good) on specific goods, which is exactly how VAT works across the EU. Tariffs can be applied in other ways too, such as a surtax (tax on top of another tax). But I don't think tax on profits is common, as that would give the foreign company too much leeway to fudge the numbers.