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In effect, starting July 1, 2003, the European union has done just that by imposing an online sales duty counseling sexual abuse survivors . This means whenever someone from England buys an e-book from someone in the United States, the American should submit this tax bill. Of course, If the sale would have been to someone in Germany, the tax rate would show a discrepancy.
It pays for itself that countries impose a tax on sales and income manufactured in their own jurisdiction. But does it make sense for Germany to tax sales manufactured in the Nation?
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The rationale behind this follows: Since countries can't collect sales tax on Internet transactions at their borders, the only way they can collect it (other in comparison to self-assessment system) is by having an online sales tax. Further, it is claimed that businesses in the ecu Union suffer a major competitive disadvantage because offer to collect Value Added Tax (VAT) but others don't.
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Canada has what get call a national sales tax or a worth added tax (VAT). This Goods and Services Tax (G.S.T.) of five percent (as at January 1, 2008) is applicable to many Canadian payments.
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Goods shipped to Canada are prone to G.S.T. on importation. Such tax is actually usually assessed at the border. But what if you are a Canadian registered for G.S.T., supplying a Canadian customer yet your supplier is a foreign country?
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