Web VAT continues to baffle Brussels
Eurocrats this week admitted they are still searching for a way to enforce proposed VAT rules on non-European Union companies selling digital goods to citizens in member states.
The European Commission has long sought a solution to the problem of collecting VAT on downloadable goods, such as music, but an answer to the issue of enforcement still eludes experts.
Speaking at a European Federation of Accountants convention, Arthur Kerrigan, principal administrator of the commission’s Taxation Customs Union, said the commission recognised a need for a solution and was looking for one, but gave no indication of a time frame or what a solution would look like.
His comments came in response to questions from ACCA’s head of taxation Chas Roy-Chowdhury at the conference in Brussels which asked whether VAT could survive in the 21st century.