RyaReisender: That it's easier for business really seems to be a strange reason.
Didn't they just change it so companies can no longer "cheat" by registering in a country with low or no VAT?
Or course it's harder for businesses now.
For customers... I think it's actually fairer even though it means many people have to pay more. The money you earn considers the VAT you have to pay for products in your own country after all. It's your own country that decides the VAT you have to pay after all.
Is it? I think it is absurd to pay duty for a product which isn't available in the country asking for the duty. Same with VAT. Why paying added tax to the state which fails to provide the product, directly or indirectly?
Matruchus: The biggest problem always was that most online stores and services never paid any taxes to eu countries to which they sold products to by situating themselves in tax oases like Luxembourg, Cyprus long time ago and countless others. The catalyst for this was obviously Amazon which wasn't paying any taxes to eu countries and is under tax evasion revision by eu.
Yes, but they could address the issue in more thoughtful way. Especially considering how long it takes to pass a regulation (assuming the time is used for proper evaluation and finding supporting and arguing materials).
Let's say, creating an entry level when a subject has to have income higher than X. I don't like layered laws filled with many exceptions and it is not fool-proof for sure but it would be at least some attempt to apply it reasonably.
I can imagine this kind of law being used when there is unified and simplified way how to pay taxes in various countries, not in this jungle.
