Cons Slap 10% VAT on itunes downloads-Budget

WhatRecovery

Looks like the end of the 99p download then, just when you thought there was nothing left to lose out on! Will hurt job hunting teens and students laden with tuition fees the most?

John_Gray

What's to stop Apple paying ever so slightly more tax and keeping the download price at 99p?

WhatRecovery

Also, what about Android? How does that work?

alanrowell

They've changed the rules so that Apple and the like can't avoid tax by using Luxembourg

John_Gray

Maybe have a look at this article...

almillar

I pay tax when I buy a CD, why shouldn't you pay tax when you download an album?
Are you worried about poor impoverished Apple and Amazon?

JasonLVC

WhatRecovery wrote: »

Looks like the end of the 99p download then, just when you thought there was nothing left to lose out on! Will hurt job hunting teens and students laden with tuition fees the most?

The "Cons" are not slapping 10% VAT on iTunes. The rule change has come from the EU and the UK has to follow these edicts or else face penalties.

iTunes is based in Ireland where VAT is 23%, from next year, iTunes will have to charge UK VAT which is 20%. So there is a saving to be made there - bet they won't drop their prices though!


The point being is that the UK purchase means VAT going to the UK taxman instead of the Irish taxman.

For Amazon, based in Lux, the VAT rate is about to go upto 17% from 15% so either way, the price was going to go up anyway and again, instead of Lux getting the VAT, the VAT goes to the rightful country, the UK, where the consumer is based.

WhatRecovery

Thanks for that - much more illuminating than what I read on Twitter - tried to get copy of the Sunday paper to read about it, but couldnt.