Anorak | It’s EU, Stupid: Apple And Amazon Get Stung By Osborne In The Budget

It’s EU, Stupid: Apple And Amazon Get Stung By Osborne In The Budget

by | 24th, March 2014

THAT’S what the newspapers are reporting this morning, that Osborne has stung the big internet companies like Amazon and Apple by changing the rules on VAT rates. Although it’s not actually Osborne who has done this, it’s the EU :

Multinational companies such as Amazon and Apple will be forced to add VAT to all UK downloads including music, film, smartphone games and e-books from January 2015 in a move that may drive up the cost of music tracks from 99p to £1.19.

The move forms part of the Government’s “international efforts to develop tough, new global tax rules,” George Osborne said in his Budget address last week. From next year, download services will be subject to VAT in the country where the consumer is located.

According to the Office for Budget Responsibility (OBR), the change will attract an extra £300m in VAT revenues in the first year.

The Mail covers the story in much the same way. However, this is nothing to do with Osborne or the UK budget. This is a change in the central EU rules about VAT. HMRC published

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Posted: 24th, March 2014 | In: Money, Politicians Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink