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Diana Wallis Questions Commissioner over VAT on E-commerce
November 15, 2000 12:00 AM
Liberal Democrat MEP Diana Wallis will today reinforce her calls on the European Commission to scrap their proposals for VAT on e-supplied goods and services delivered electronically from outside of the EU. EU businesses already have to account for tax on such items.
At a lunch time meeting today with the Commissioner responsible, Fritz Bolkestein, Ms Wallis will re-emphasise the points already made in her report on the subject to the Parliament's Legal Affairs Committee.
Diana Wallis said: "Rather than trying to impose complex administrative and bureaucratic solutions in a vain attempt to equalise the position between EU and USA e-business the Commission should seriously consider scrapping VAT on e-commerce within the EU - that would be a real signal to encourage e-business.
"Otherwise we can well do without these proposals which will merely antagonise other countries, as the international community has been trying to negotiate a global solution to the problem of e-taxation.
"The EU should not jump the gun on these negotiations but should at the very least be prepared to support a moratorium on such taxes to 2006 as adopted in the USA."
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