We’re sure it’s annoying for those of you living in Europe, that the prices for almost every product in tech is exactly the same in numbers when compared to US prices, but with that exchange rate playing against you. Sadly it’s a standard that has dominated the industry for a while, digital downloads from App Stores aren’t exempt, and even though you’d think that companies would find ways to work around this, new legislation is actually about to make it more complicated.
A recent law passed in the UK closes the loophole that allowed digital downloads to avoid UK taxes. According to the news:
The budget document said: “As announced at budget 2013, the government will legislate to change the rules for the taxation of intra-EU business to consumer supplies of telecommunications, broadcasting and e-services. From 1 January 2015 these services will be taxed in the member state in which the consumer is located, ensuring these are taxed fairly and helping to protect revenue.”
Taxes will oscillate 15% to 20%, depending on the product, and his law should take effect by early 2015. It would be nice if companies would consider absorbing this tax difference given the exchange rate, you know, just to keep that same price tag at different exchange rates. Sadly, the more realistic approach will see UK customers affected. Let’s see how the private sector reacts to this change.