TaxCorporate TaxAOL choses Luxembourg for VAT base

AOL choses Luxembourg for VAT base

AOL Europe has confirmed that it will launch a new business unit in Luxembourg in order to comply with EU tax legislation.

Link: New CFO at AOL Europe

The move will result in the ISP paying VAT in the UK for the first time, and is a coup for rival, Freeserve, after a long-running legal battle between the two internet giants.

Gordon Brown adopted new EU internet regulations which will come into play on 1 July. They stipulate that ISPs operating in Europe must abide by the tax laws in each European country.

A spokesperson for AOL said the company had chosen Luxembourg because of its low VAT rate, and because it already has an office there.

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