EU imposes tax on Internet products.

The European Union agreed to impose a new tax on products downloaded from the Internet - including software, videos and music - aiming to help Europe's Web-based businesses compete with U.S. companies. The EU complained that U.S. giants of the industry levy no taxes from online customers. The effect has been to give a sales tax loophole to European buyers, who find cheaper-priced goods on U.S.-based sites. Although U.S. businesses are the focus of the legislation, the tax affects all non-European Internet businesses selling digital products, whether in the United States or elsewhere. The tax, to be enforced beginning July 1, 2003, would take effect when an Internet customer in, say, Belgium, purchases MP3 music files from, say, San Diego, Calif-based EMusic.com. EMusic.com would have to determine electronically that the purchaser is located in Belgium. Using that information, EMusic's computers would add the appropriate Belgian sales tax to the purchase.
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Iwan Gilles-d'Hamers Iwan Gilles-d'Hamers
Directeur Consumer Chan... MICROSOFT BELUX
Christel Van der Perre Christel Van der Perre
Consumer Channel Market... SYMANTEC
STIJGERS & DALERS BEL20
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