[registrars] VAT (sales tax) payable to EU on Domain Sales?? (Meeting)

["Paul M. Kane" <Paul.Kane@REACTO.com>]

Great.... I look forward to a productive meeting....

Following the discussion that the provision of a Domain Name by a Registrar is a
Service and not a Product, that said may I bring to Registrar's attention the
proposed European Commission's VAT (Sales Tax) directive. VAT on Electronically
Delivered Services - EU Proposal for Directive

Might I suggest that providing a domain name is infact subscription to a
service..... and therefore (I am told unauthoritatively is) outside the scope of
this Directive...

On 7th June, the European Commission presented a proposal for a Directive to
modify the rules for applying value added tax (VAT) to certain services supplied
by electronic means . The objective of the proposal was to create a level
playing field for the taxation of digital e-commerce in accordance with the
principles agreed at the 1998 OECD Ministerial Conference and to make compliance
as easy and straightforward as possible.
The proposal mainly concerns the supply over electronic networks (i.e. digital
delivery) of software and computer services generally, plus information and
cultural, artistic, sporting, scientific, educational, entertainment or similar
services. The proposal would ensure that when these services were supplied for
consumption within the European Union, they were subject to EU VAT, and that
when these services were supplied for consumption outside the EU, they were
exempt from VAT.
The full text of the proposal is available on the Europa Internet site:
http://europa.eu.int/comm/taxation_customs/proposals/taxation/tax_prop.htm

Currently, electronically delivered services originating within the EU are
always subject to VAT irrespective of the place of consumption, whilst those
from outside the EU are not subject to VAT even when delivered within the EU.
This situation has the potential to constitute a major distortion of competition
and to place EU service providers at a disadvantage relative to non-EU service
providers.
The proposal will now be forwarded to the EU's Council of Ministers for
adoption, which can take place once the European Parliament and the EU's
Economic and Social Committee have given their Opinions.

The bottom line is a Registrar based outside the EU but selling to a consumer in
the EU (under the directive) will have to charge and pay to the EU VAT (sales)
tax :(

Paul

"Michael D. Palage" wrote:

> The meeting looks like a go for Wednesday.  I looked at alternate dates but
> it was somewhat problematic. As far as a meeting place, most people have
> indicated a room near the Dulles airport because that was a preferential
> airport as opposed to Regan/DC National. Maybe at the Reston Hyatt where the
> IFWP meeting was original held. There are looks like a telephone bridge will
> be possible for those not able to attend.
>
> This meeting will provide an excellent opportunity as Ken suggested to
> advance some issues that we as a constituency will be addressing in
> Yokohama.
>
> Mike