The Budget should enact important changes to the payment of VAT on - TopicsExpress

The Budget should enact important changes to the payment of VAT on internet purchases and downloads. Buyers, for instance of e-books, will now have to pay the VAT rate of their home country, not that of a retailer such as Amazon. It charges just 3% VAT, the rate in its home territory - Luxembourg. From 1 January 2015 it will have to charge UK purchasers the 20% British VAT rate - and then hand that money over to the UK government. It will mean higher charges for some UK internet shoppers who use a foreign service, and it will raise about £300m more each year for the Treasury. This is an EU-wide change affecting all 28 member countries and will remove the price advantage of some internet retailers based outside the UK. Stefan Rosenthal bbc.co.uk/news/business-26529697

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