ad info

 
CNN.com  technology > computing
    Editions | myCNN | Video | Audio | Headline News Brief | Feedback  

 

  Search
 
 

 
TECHNOLOGY
TOP STORIES

Consumer group: Online privacy protections fall short

Guide to a wired Super Bowl

Debate opens on making e-commerce law consistent

(MORE)

TOP STORIES

More than 11,000 killed in India quake

Mideast negotiators want to continue talks after Israeli elections

(MORE)

MARKETS
4:30pm ET, 4/16
144.70
8257.60
3.71
1394.72
10.90
879.91
 


WORLD

U.S.

POLITICS

LAW

ENTERTAINMENT

HEALTH

TRAVEL

FOOD

ARTS & STYLE



(MORE HEADLINES)
*
 
CNN Websites
Networks image


EU postpones decision on online taxation

Network World Fusion

(IDG) -- European Union finance ministers shelved plans to introduce value-added tax on online transactions, setting themselves a deadline of the end of June 2001 by which to reach a decision.

The stumbling block in front of an agreement is the question of how to charge VAT on transactions between buyers of goods and services online inside the EU and sellers from outside, said Norbert Schwaiger, spokesman for the Council of Ministers, the forum for ministerial meetings.

"No decision was foreseen," he said. "The ministers took stock of the situation and it was agreed that a formula must be found that secures member states their fair share of VAT revenue, while not putting off online transactions with excessive administration."

MORE COMPUTING INTELLIGENCE
IDG.net   IDG.net home page
  Network World Fusion home page
  Free Network World Fusion newsletters
  IDG.net's technical development page
  IDG.net's networking page
  Reviews & in-depth info at IDG.net
  E-BusinessWorld
  TechInformer
  Questions about computers? Let IDG.net's editors help you

Until now two options have been considered. First, the online operator could choose the member state, which would obviously result in companies choosing the country with the lowest tax level. The U.K. and the European Commission, the European Union executive body, are seen favoring this approach.

The second idea, proposed by France and Belgium, would require operators to register in all member states. "This is the worst option as regards burdensome administration," Schwaiger said.

The most likely outcome is somewhere between the two, Schwaiger said. "The ministers are now looking at a system where operators register for VAT in one country and the revenue are then shared among all 15 members of the EU," he said.




RELATED STORIES:
Analyst: Corporations could improve e-government
November 8, 2000
Cigarette maker files lawsuit over Internet-sales ban
October 19, 2000
California may pass state Internet sales tax
September 1, 2000
Report: China to tax e-commerce
August 4, 2000
Internet tax losses anyone's guess
July 27, 2000

RELATED IDG.net STORIES:
Internet tax loss may be billions
(InfoWorld)
Internet sales tax still lurks
(PC World)
Net-tax question takes center stage at Gartner ITXpo
(IDG.net)
The politics of technology
(InfoWorld)
U.S. Congress receives Net-tax report
(IDG.net)
EU plans Internet tax reform
(IDG.net)
ITxpo : Lieberman says IT should police itself
(IDG.net)
House approves Internet tax moratorium
(IDG.net)

RELATED SITES:
European Union

Note: Pages will open in a new browser window
External sites are not endorsed by CNN Interactive.

 Search   

Back to the top   © 2001 Cable News Network. All Rights Reserved.
Terms under which this service is provided to you.
Read our privacy guidelines.