Luxembourg finally agreed at the Eurofi Conference of EU finance ministers in Brussels to a deal which will apply VAT to services in the country where they are consumed, rather than the location of the company which sells them, paving the way for sweeping changes to the way electronic services are taxed.
Luxembourg, which offers one of the lowest VAT permitted under EU regulations, at 15%, attracting many of the big names in e-commerce such as Amazon.com, Skype and PayPal, would only agree to the deal in return for postponing the EU VAT until 2015 – five years later than the date proposed by the EC, the International Herald Tribune reports.









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