TaxPersonal TaxCommons taxed over internet collection

Commons taxed over internet collection

Trading over the internet is a real threat to tax collection - according to the influential House of Commons Trade and Industry Committee.

MPs warned in a report on the e-envoy and e-minister’s first year: ‘E-commerce poses some risk to tax revenues, for example as a result of the difficulties over collecting VAT on cross-border transactions, but also through avoidance.’

And they claimed: ‘We regard the abolition of betting duty as one of the first fiscal casualties.’

The report said the UK Government has ‘some anxieties over the arrangements for collecting tax from non-EU companies on sales to EU customers’.

And it warned that ‘much needs to be done, in particular to establish how VAT is to be collected from consumers in the EU who purchase goods from outside the EU’.

The MPs said this followed international agreement that these should be levied at the consumer’s place of residence, that digital products are not goods but services for taxation purposes and that payments for downloading are not royalties.

It also claimed that there is now apparent consensus around the UK’s position that web sites are not permanent establishments.

Links

Offshore betting will live on, says bookie

Related Articles

Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

1m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

3m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

4m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

5m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

6m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

6m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

8m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

9m Emma Smith, Managing Editor