Web VAT continues to baffle Brussels

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.


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