“Apple may be forced to increase the amount of Value Added Tax that it charges for iTunes music and video sales in the U.K. as Her Majesty’s Treasury pushes to end tax loopholes that allow consumers to pay much lower rates on digital purchases,” AppleInsider reports.
“The new law, backed by Chancellor of the Exchequer and Second Lord of the Treasury of the United Kingdom George Osborne, would end a policy that allows Apple to sell downloads through EU countries like Luxembourg with VAT rates as low as 3 percent,” AppleInsider reports. “Instead, Apple would have to levy the U.K.’s full 20 percent VAT for purchases in Britain, according to The Guardian.”
Read more in the full article here.
In a little-noticed announcement, Osborne said he would used this year’s finance bill to impose the new law from 1 January 2015,” Rowena Mason reports for The Guardian. “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.'”
Mason reports, “Official estimates suggest the move could raise an extra £300m for the Treasury. Online retailers could pass on those costs to consumers in the form of higher prices.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]