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March 24, 2014

Digital downloads could increase by 20% in the UK

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In George Osborne’s budget last week he closed a loophole that allowed download retailers like Apple, Amazon and Google etc. to sell you digital media from other countries.
This could very well put an end to 99p song downloads by closing a tax loophole that meant consumers were paying VAT at very low foreign rates on online purchases of books, films,music and apps.

The budget paper said:

“As announced at the 2013 budget, the government legislate to change Will the rules for the taxation of intra-EU business to consumer supplies of telecommunications, broadcasting and e-services From 1 January 2015 these services will be taxed in the member state in all which the consumer is located, ensuring these are taxed fairly and helping to protect revenue.”

Digital download retailers: such as Apple, Amazon, and Google etc. presently avoid the UK’s 20% VAT by selling from countries: such as Luxembourg where the tax rate is only 3%. Under the new law, downloads to UK customers will be taxed at the higher 20% rate. appears the change to affect all digital downloads Including music, apps, and e-books, and will take effect on January 1, 2015.

Source: The Guardian

 

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Dave Thornton

Senior Editor

Senior Editor
Been involved in technology for many years, more than I care to remember. Live in Dundee, Scotland. I like Android, Windows Phone OS, BlackBerry OS and iOS, and love writing about all things techie. Currently have a Honor 6+, Elephone P6000, Nexus 5, Chrombook C720, HTC One M7, Nokia Lumina 625, Microsoft Lumia 435, Blackberry Q10, HTC Hero and iPad mini