Europe’s New Tax ‘Solution’ May Have Created a Big Problem for Indie Artists, Labels

The regulation, meant to close corporate tax shelters, may adversely affect small artists and businesses throughout the continent.

Beginning January 1, new changes in European Union tax regulations will mean that all businesses selling digital products in the EU, including music, audio and film downloads, eBooks, computer games and app purchases, will be forced to charge VAT (sales tax) based on the country where the consumer resides, rather than where the seller is based — regardless of whether or not the supplier is based in the EU.

The change in law is being introduced to close a tax loophole that currently enables multinational web giants like Amazon, Google and Apple to charge lower rates of sales tax by basing operations in European countries such as Luxembourg, where rates are among the lowest in the European Union.

Read the full story: Billboard