Wonder if the Board member will be sending over more [Archive] - Fly Fishing Forum

: Wonder if the Board member will be sending over more


fredaevans
06-09-2003, 12:47 PM
Birthday Presents to our European 'family members?'INTERNET TAXES REMAIN IN FOREFRONT

SAN FRANCISCO (CBS.MW) -- In the digital world, U.S.-based Internet
companies will soon have to become global tax collectors.

That means higher prices for customers overseas, not to mention a lot
of cumbersome compliance.

Starting July 1, companies doing business in European Union member
nations will be required to charge customers living in those countries
the value-added-tax rate on digital services.

The European Union's regulation requires the collection of VAT taxes on
digital services, a broad term that could affect the business of many
Internet companies that sell a variety of online goods and services --
music, videos, dating, subscriptions to news sites or even e-learning
classes.

"The biggest stumbling block is determining what is a digital service,"
said Jon Abolins, vice president of tax and government affairs with
Taxware. "The valuation should be, 'Am I selling something that can't
take any tangible form?' "

If the product or service is reduced to a digital medium, then it's
most likely classified a digital service.

This broad definition of digital service may require Internet
companies, which heretofore have been able to sell to overseas customers
without the burden of collecting taxes from them, to begin implementing
a tax-collection process.

For instance, an online school with a British student might be required
to collect the VAT tax, said Abolins.

Similarly, USA Interactive (USAI) may have to begin collecting taxes on
EU residents who subscribe to the company's Match.com online dating
service.

Music services offered by the likes of Apple Computer (AAPL) and
RealNetworks (RNWK) fall into the digital services category as well.

And Yahoo (YHOO) will likely have to charge taxes on EU residents that
subscribe to its Yahoo Platinum service. AOL Time Warner (AOL) will have
to collect taxes on subscribers accessing its CNN video streams.

What about, say, EU residents who book hotel rooms from Hotels.com or
airline tickets from Priceline.com (PCLN)? Abolins says that tickets and
rooms would not qualify because a customer is receiving an actual
product. But the service-processing fee just might fall under the broad
interpretation of digital services, he said.

So far, EBay (EBAY) has been one of the few, if not the only, Internet
company that's made it clear that it will begin collecting taxes on the
brokerage services it provides sellers to EU customers.

But EBay won't be the only one that'll have to comply, said Abolins.

Shares of Internet companies have come under pressure of late partly
due to investor concerns about the implications of online taxes.

Dble Haul
06-09-2003, 01:31 PM
(Cloaked attempt to make this somewhat flyfishing related...)

I suppose I'll have to make sure none of my flytying material purchases from ebay aren't originating from overseas....:p

fredaevans
06-09-2003, 01:58 PM
of our European members pay close attention to e Bay. I've 're-shipped' several spey rods, vises, etc., to Board members. Frequently the products are items that (with the VAT tax) would be considerably more expensive, or un-available, 'across the Pond.'

Looks like the Tax Guys have figured this one out. Forgot to add: the typical Airborne fee has been $35 USD, but if you've saved a hundred bucks ......

fae

John Desjardins
06-09-2003, 02:11 PM
Mark, I believe that as a US resident you are exempt from the VAT for items bought from the EU. But you are liable for the state sales tax, and duties, etc.

removed_by_request
06-09-2003, 03:10 PM
Thats a big 10-4 on the duties and sales tax, unless you get creative.

Have them mark it as a gift, no tax or duties on that. Rumor has it that it works.

fredaevans
06-09-2003, 04:17 PM
When I've sent 'stuff' across the pond I always mark the package as a Birthday gift/Christmas, etc. Further 'fluff' the package by including a card to my fav. Niece, Nef. etc. One never knows if the package will get opened ....
:devil:

Bob Pauli
06-09-2003, 07:13 PM
California sales and use taxes do not apply to services. A common example is the repair of a piece of equipment; sales tax is charged on the parts and is not charged on labor.

fredaevans
06-09-2003, 07:34 PM
If a good bottle of single malt costs me $25-$30 bucks and the labor to initially 'make it' is a large part of the cost ... and the rest of the time it's sitting in oak barrels ... why do "you guys" charge me sales tax on the whole amount?
:devil:

Sorry Bobbie, that was toooo easy.:hehe:

fae