The European commission – which oversees European Union law as the EU\’s executive arm – on Wednesday gave Luxembourg 30 days to increase its VAT rate on digital services from 3% to 15%. This will close a tax loophole that has encouraged companies such as Amazon, Skype and Netflix to be based in Luxembourg to benefit from the 3% rate when selling throughout the EU.
Oh, well done. Well done indeed.
What a victory.
UK consumers now have to pay more to the Treasury of Luxembourg. A few more victories like that and we\’ll really have our economic problems licked, eh?