Taxation Of Digital Products Sales In The European Union

The European Union (EU) has adopted an approach very different from the U.S.’ regarding taxation of e-commerce. Whereas the U.S. adopted the Internet Tax Freedom Act, which introduced a tax moratorium that banned Internet access taxes and new and discriminatory taxes on the Internet, the EU decided to pass a Directive to tax online sales of digital products.

The following questions have been addressed in this article:

What are the Reasons behind Directive 2002/38/EC?
What is the Regime Implemented by the Directive?
What are the Consequences for E-Businesses?
Is the Tax Regime very Different in the US?
How are these Issues Approached from a Global Perspective?


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