Message-Id: 
From: Jonathan Bryce 
Subject: Re: Since when did US companies become EU tax collectors ? :)
Newsgroups: uk.finance
Date: Wed, 08 Jun 2005 19:36:43 +0100

Trust No One wrote:

> I know ghat Bush/Blair considers the UK as the 51st US State but this
> is ridiculous :)
> 
> Tried to purchase a small software package today from a US company and
> was startled when VAT at 17.5% was added to the total at checkout. WTF?
> 
> There was a note on the Website to the effect that this was in order to
> comply with 2003 EU regulations.
> 
> I guess I must have been asleep at the helm over the last 2 years :(
> First time I've come across this.

It was widely reported in the American press, but not so well publicised
here.  Freeserve campaigned heavily for it as their main competitor, AOL
was getting away without charging VAT on their ISP subscription fees.

> Anyone else come across this in their online shopping runs?

A surprisingly large number of companies are complying with the rules. 
Others are redirecting customers to an EU subsidiary or reseller to avoid
having to register themselves.