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Old December 11th, 2003, 03:33 PM
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AOL reason for NOT paying VAT in UK

any echarchan confirm this statement please:
it is because of the VAT. AOL offer that contents because the way AOL get away without paying VAT. The contents is on servers based in America, AOL say that the actual internet connection is free, it's the contents you pay for. And as the contents is in America it can't be charged for. However, the laws going to change, so AOL will have to pay tax soon, which means you'll see the price go up.

but i think that AOL offers diff content to US and UK (i know this for a fact) and that isnt the reason for AOL not paying VAT in UK! so do u know what reason is?
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Old December 11th, 2003, 06:16 PM
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Can you be a bit mroe clear??

All I can gather is that

1) AOL operates in UK
2) AOL says that connecting to AOL is free but their content is what needs to be paid for by subscribers.
3) UK government wants to tax AOL

Now, any company has to pay taxes to local government where it operates is my understanding. So what exactly is the issue?
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Old December 11th, 2003, 10:44 PM
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hey thiefboy,

why are you so worried that the new tax laws will increase the price?
you have not yet managed to steal someone's internet connection??

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Old December 11th, 2003, 11:58 PM
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Quote:
Originally posted by echarcha
Can you be a bit mroe clear??

All I can gather is that

1) AOL operates in UK
2) AOL says that connecting to AOL is free but their content is what needs to be paid for by subscribers.
3) UK government wants to tax AOL

Now, any company has to pay taxes to local government where it operates is my understanding. So what exactly is the issue?
well me and my friend was having an arguement, he said that the reason AOL offer so much more (software, content + internet connection) is because they dont have to pay VAT. He also said the reason is because AOL content is in US and he agreed with ur no 2 and 3.
so i said US AOL is completely different to UK AOL, i mean the content, even the basic software (different versions, 8 in uk and 9 in US) is different so that isnt the reason. and i said how can a company offer free internet connection and that a broadband connection!
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