eBay, CalTrade Report, European Union, VAT - eBAY FACES NEW VALUE-ADDED TAX IN EUROPE - CalTrade ReportAsia Quake Victims SAN JOSE – A new tax on online purchases in the European Union will mean higher fees for eBay sellers on the continent beginning July 1, and it could mean a temporary downturn in eBay listings there, according to several media sources. - SAN JOSE – A new tax on online purchases in the European Union will mean higher fees for eBay sellers on the continent beginning July 1, and it could mean a temporary downturn in eBay listings there, according to several media sources. - eBAY FACES NEW VALUE-ADDED TAX IN EUROPE eBay, CalTrade Report, European Union, VAT - eBAY FACES NEW VALUE-ADDED TAX IN EUROPE

Saturday, October 28, 2006

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eBAY FACES NEW VALUE-ADDED TAX IN EUROPE

SAN JOSE - A new tax on online purchases in the European Union will mean higher fees for eBay sellers on the continent beginning July 1, and it could mean a temporary downturn in eBay listings there, according to several media sources.

The San Jose-based auction company posted notices this week on its English and German electronic bulletin boards, warning that it will begin collecting higher fees July 1 to comply with the EU's new value-added tax (VAT) on digital services. The taxes apply only to items sold within the EU and should not affect purchases in North America or elsewhere.

The tax will be a percentage of the service fee that eBay sellers pay on goods they list and sell, as much as 5% of the sales price of an item. The VAT will vary according to the country where the seller lives, ranging from 15% in Luxembourg to 25% in Denmark.

Germany, one of eBay's most popular markets outside the US, has a VAT of 16%. The new fees will raise the cost of a 500-euro item by a couple of euros, depending on the listing. But the fees could add up for larger items, such as cars and computer equipment.

eBay spokesman Kevin Pursglove said sellers will likely try to unload merchandise in the weeks leading up to July 1, but he was confident they'd return to the world's largest online auction company.

"Historically, whether in the United States, Europe or Asia, what we've seen is a heavy increase in listing a week or two weeks before the implementation [of a] fee, then a drop-off for four weeks," Pursglove said. "Then the listings tend to ramp back up to their normal rate."

eBay doesn't collect taxes on behalf of users in the US, but advises sellers it's their responsibility to pay taxes. Winning bidders are supposed to pay the tax rate in the seller's state or county, if any, but few vendors charge more than a shipping fee.

Go back, or read the latest Page Two stories:

MEXICO LIFTS CALIFORNIA LETTUCE BAN

MEXICO CITY, Mexico – 10/20/06 – The weeks-old ban on California lettuce shipments to Mexico has been lifted after US Department of Agriculture tests for the E. coli bacteria proved negative; California is the country’s leading producer of lettuce with an estimated 70-75% of the total US production of iceberg lettuce and between 80-85% of the leaf lettuce.


NAPSTER ENTERS THE JAPANESE MARKET

LOS ANGELES – 10/16/06 – Napster, the digital music service provider, has entered the Japanese market with the introduction of a new subscription model that allows subscribers, who until now acquired digital music by paying for each track and album individually; currently, Japan is largest music market in the world outside of the US.


GUESS? IN NEW MEXICAN JV

SAN FRANCISCO – 09/29/06 – Fashion marketer Guess? has inked a manufacturing and marketing joint venture agreement with Mexico’s Grupo Axo; the Mexico City-based company will engage in the production, wholesale distribution and retail sale of Guess? fashion apparel, accessories and other related products throughout the country.


GOOGLE BELGIUM TAKEN TO COURT

BRUSSELS, Belgium – 09/20/06 – Internet search engine Google has been ordered to cease reproducing articles from French-language publications in the news sections of its Belgian website; the court order threatens the company with a fine of $1.3 million daily if it does not comply.


NEW OAKLAND INTERMODAL FACILITY PLANNED

OAKLAND – 09/11/06 – The 425-acre former Oakland Army Base will be converted into the Port of Oakland’s newest intermodal rail yard under the terms of an agreement reached between the port and several local and state government agencies; the planned OHIT – or Outer Harbor Intermodal Terminal – is expected to significantly reduce container transfer times, increase throughput, and reduce truck traffic in and around the port when completed within the next several years.


INTEL MAY LAYOFF THOUSANDS

SANTA CLARA – 09/04/06 – Chipmaker Intel is reportedly planning to announce a massive layoff within weeks that could eliminate as many as 10,000 jobs or one-tenth of the company’s total global workforce; the move was spurred by several financially disappointing quarters and the results of an internal corporate analysis conducted in April.





 


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