Practical Responses For Suppliers Established Outside Of The European Union To The Imposition Of Value-added Tax On Certain Sales Of Business-to-consumer Digital Services.

In response to complaints by European suppliers of digital services that the EU value-added tax (VAT) system placed them at a competitive disadvantage against their non-EU counterparts, the e-commerce VAT Directive (Council Directive 2002/38/EC) was enacted. Since July 1, 2003, suppliers of digital services with business establishments outside of the EU have been required to levy an EU VAT on digital services supplied to consumers within the EU. However, from the perspective of non-EU suppliers, the e-commerce VAT Directive did not level the playing field for European suppliers, but tipped it in their favor instead. What practical responses are available to non-EU suppliers?

The following questions have been addressed in this article:

How are non-EU suppliers of B2C digital services disadvantaged by the e-commerce VAT Directive?
What strategies may be considered by non-EU suppliers of digital services?


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