The EU parliament has caught the world by surprise by instituting a law, effective January 1, in which every business around the world who does business inside the EU with digital products and services will need to register for a VAT (tax) ID with EACH of the 28 countries in the EU, and pay quarterly taxes (28% in Hungary) to each of those countries AND keep every sales record for 10 years. Theres a tremendous amount of chatter about it right now and a lot of anxiety from microbusinesses who dont have the ability to deal with the red tape. The tax was instituted because the multinationals have flocked to the lowest tax country in the EU, depriving the other countries of revenue. The probable result of this law will be that microbusinesses around the world will now flock to the Amazons and Ebays who have the capacity to deal with these changes, prices will surge and sales will drop. The secondary effects of this ridiculous law are that people from around the world will just stop selling to the EU; ideas will stop flowing, and people will have painstakingly built their online businesses will have to look elsewhere for income. The EU Parliament is either clueless beyond belief, or the underlying intention is to destroy the microbusiness economy.
Posted on: Wed, 03 Dec 2014 15:45:45 +0000
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