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VAT change downside for Ireland, says ICT lobby.
(From Irish Independent)
REGULATIONS coming into force today forcing companies outside the EU to levy VATon electronic goods and services sold online will put Ireland at a competitivedisadvantage, ICT Ireland said.
This is because of high VAT rates in Ireland, compared with other EU countries. From today, Irish consumers who purchase digital goods online from US websites will see theprice jump by 21pc.
The new directive applies to downloadable music, games and software bought by EU citizens from websites outside the EU.
The directive will not affect sales of tangible goods, such as CDs, as they are alreadysubject to VAT. The directive is an attempt to level the playing field between US and EUweb traders.
Up to now, only web traders based in the EU had to collect VAT and then distribute it to national governments. This situation put US websites at a ...
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