Posted on 02/08/2002 12:15:13 PM PST by Native American Female Vet
Bush administration says proposed EU tax could impose burden on U.S. sellers
By Associated Press, 2/8/2002 16:07
WASHINGTON (AP) A European Union proposal to tax goods and services delivered digitally over the Internet would impose new burdens on U.S. sellers, the Bush administration said Friday.
EU finance ministers are expected next week to consider a plan that would require U.S. sellers to register in Europe and charge the value-added tax on digitally delivered products that applies in the consumer's home country.
Deputy Treasury Secretary Kenneth Dam said in a statement that the administration has ''serious concerns'' about the proposal, which he said could allow EU companies to charge lower tax rates and would impose ''onerous administrative and compliance burdens'' on U.S. companies.
In addition, he said the value-added tax on digitally delivered products such as magazines, books and newspapers would be higher than for their counterparts that are delivered in physical form.
Dam said the action could undermine efforts to reach an international consensus on Internet tax issues and that the EU move ''may be contrary'' to treaties pledging not to discriminate against people and businesses in other countries.
''Unilateral proposals such as the EU's may encourage others to take unilateral measures, rather than waiting for the global consensus,'' Dam said.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.