Read the text below in order to answer questionEU Law Taxes Overseas Net Firms
They've survived the bursting of the tech bubble, a global
economic downturn and the occasional virus, but now overseas Internet
retailers may see their European profit push derailed by one of the
oldest drags on business: tax. On July 1, a new EU
(European Union) directive goes into effect requiring all Internet firms
to account for value-added tax, or VAT, on "digital sales".
The law adds a 15 to 25 percent levy on select Internet
transactions such as software and music downloads, monthly subscriptions
to an Internet service provider and on any product purchased through an
online auction anywhere in the 15-member bloc of nations.
The VAT tax is nothing new for some Net firms. European dot-coms
have been charging customers VAT since their inception. Their overseas
rivals though have been exempt, making foreign firms an obvious choice
for the bargainhunting consumer.The author states that the VAT (value-added tax) has been