Tech Buzz 10/03
How the Value-Added Tax affects your tech purchases; a new OS for Macs
By Amanda C. Kooser •
Opinions expressed by Entrepreneur contributors are their own.
VAT Facts
It's official: The Value Added Tax (VAT) required for purchasesmade in the European Union (EU) now extends to non-EU companies.The VAT, which ranges from 15 to 25 percent, depending on theproduct and country the customer resides in, represents asubstantial amount. If you have online business customers overseas,you'll have to collect the VAT for digital sales. That includessoftware downloads, paid content, online auctions, e-books, Webhosting and other electronic services. Details on enforcement aresketchy, but there are potential monetary fines for late VATpayments or nonregistration.
Fortunately, entrepreneurs don't have to register with eachEU member state--only one is required. The UK Customs sitesimplifies the process by allowing you to sign up online athttps://secure.hmce.gov.uk/ecom/voes if you choose theUK. Visit the EU's VAT site at www.eurunion.org/legislat/vatweb.htm for more on whois required to register and what items are covered by the newlaw.
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