EU considers tariffs on digital services Big Tech

Please do it. Hit us where it hurts.

Do it!

The US can fucking burn for all I care but, I do feel like implementing tariffs on US products should be carefully considered.

Trumps economic policy is going to ruin the US economy and the quality of life for Americans. There's no doubt about that.

The thing is, if you implement tariffs against the US then he can blame nasty Europe and mean China for what they're doing to the US.

Alternatively, if you just let Americans pay the tariffs I think Trump will run out of steam pretty quick. How long can Americans stand to pay an extra 50% on all the junk they buy from China?

Not very long I'm betting.

Edit: Holy crap, so I based my initial comment on how EU Internet friends always complain about how much their iPhone or PlayStation is, so I incorrectly assumed VAT was only for foreign products to encourage purchase of domestic. No, VAT is just a fancy way of saying "sales tax" that is really high and charged everywhere. Strikethrough edits below, but leaving original text.

So the EU, UK, and others have charged VAT for years on foreign goods, including US goods. This is a tax on foreign goods that can add hundreds of dollars/pounds/euros/etc. to the purchase of an American iPhone (made in China or India) for example.

This whole tariff thing is dumber than something a third grader could come up with...but...these countries were already doing it themselves to others. So they should politely STFU, as they are hypocrites.

I get having high income taxes to provide for socialized medicine and such, that's awesome, but also a sales tax that is a quarter of the price of a thing or service, taxed just because? Even if it wasn't made by the nation's citizens? Even if it was?

I'm sure it keeps EUians and UKians from going full Capitalism, but wow, especially given how much infrastructure degrades despite the funding, I recall seeing Germany cutting train routes all over across the country and small towns being cut off from them some years back and flabbergasted, knowing their high taxes go to government things...but also sales tax on top of that? 🤯

What really sucks, is they'll likely stay quiet about this, and join a tariff war anyways, and tack tariffs on top of VAT and their citizens will just be double-taxed. Why do UK-ians and EU-ians put up with this nonsense?

It gets wackier too, from the EU VAT rules site (emphasis mine):

The EU has standard rules on VAT, but these rules may be applied differently in each EU country. In most cases, you have to pay VAT on all goods and services at all stages of the supply chain including the sale to the final consumer. This includes from the beginning to the end of a production process, e.g. buying components, transport, assembly, provisions, packaging, insurance and shipping to the final consumer.

For EU-based companies, VAT is chargeable on most sales and purchases of goods within the EU. In such cases, VAT is charged and due in the EU country where the goods are consumed by the final consumer. Likewise, VAT is charged on services at the time they are carried out in each EU country.

VAT isn't charged on exports of goods to countries outside the EU. In these cases, VAT is charged and due in the country of import and you don't need to declare any VAT as an exporter. However, when exporting goods you will need to provide documentation as proof that the goods were transported outside the EU. Such proof could be provided by presenting a copy of an invoice, a transportation document or an import customs record to your tax authorities.

List of items charged VAT (non-exhaustive):

• Electronics (phones, computers, TVs)

• Clothing and footwear

• Furniture and household items

• Cars and motorbikes

• Fuel and energy (electricity, gas)

• Food and beverages (standard or reduced rate depending on country)

• Alcohol and tobacco

• Hotel stays and accommodation

• Restaurant meals

• Telecom and digital services

• Books, newspapers, and magazines (often at reduced or zero rate)

• Transport services (like air or rail tickets, depending on country)

  VAT Rates by country (also non-exhaustive):

• Austria: 20%​

• Belgium: 21%​

• Bulgaria: 20%​

• Croatia: 25%​

• Cyprus: 19%​

• Czech Republic: 21%​

• Denmark: 25%​

• Estonia: 22%​

• Finland: 25.5%​

• France: 20%​

• Germany: 19%​

• Greece: 24%​

• Hungary: 27%​

• Ireland: 23%​

• Italy: 22%​

• Latvia: 21%​

• Lithuania: 21%​

• Luxembourg: 17%​

• Malta: 18%​

• Netherlands: 21%​

• Poland: 23%​

• Portugal: 23%​

• Romania: 19%​

• Slovakia: 23%​

• Slovenia: 22%​

• Spain: 21%​

• Sweden: 25%

  Sources:

https://taxsummaries.pwc.com/quick-charts/value-added-tax-vat-rates

https://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/index_en.htm

https://www.globalvatcompliance.com/globalvatnews/world-countries-vat-rates-2020/

https://www.avalara.com/vatlive/en/vat-rates/european-vat-rates.html`___`

Ok, but how does that work when said services are free to use ?