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I did more reasearch on this. Remeber, this applies to UK corps. making UK sales only.
If you run a corp out of the UK and some of your memberships are sold to UK surfers a VAT tax has to be charged (as of July 1st, 2003). Not charging a VAT tax to UK buyers is basically tax fraud, from what I understand the UK gov. will soon be cracking down and collection...oh and it will be retroactive with interest and fines. Ebay UK has already impleneted the VAT tax.
I thought the UK processors took care of charging the tax accordingly. I spoke to IBill UK about this amd here is the conversation.
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IBILL (09:41 AM) :
Typically our clients do not charge the surfers sales tax. I would consult a tax attorney on this.
Ray (10:31 AM) :
So Ibill does not add tax accordingly?
On 1 July 2003, a new European Union Directive came into force imposing Value Added Tax (VAT) on digital sales within the European Union.
Being in the UK and not charging sales (vat) tax to UK buyers is tax faud.
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Ibill goes Off-Line..Class act!
I know some of you will look the other way on this, but I suggest you have your tax lawyer look into it. It can come back and bite you in the ass...hard
Ray
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