@vonderleyen.ec.europa.eu Here’s a potent idea for Europe: allow member states to charge VAT on online ads served within their borders. Why should platforms like Meta earn ad revenue from EU audiences without paying VAT locally? - ThreadSky

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geirsson.com • 12 days ago

@vonderleyen.ec.europa.eu Here’s a potent idea for Europe: allow member states to charge VAT on online ads served within their borders. Why should platforms like Meta earn ad revenue from EU audiences without paying VAT locally?

Comments

alexn.org•11 days ago

It won't fly, as the consumers here are the advertisers, not the users of FB/Insta. And VAT is a tax paid by the end consumer, not Meta.

geirsson.com•11 days ago

Advertisers should pay local VAT to deliver ads to a local audience just like other businesses do to sell other goods. It’s only fair.

The ad platforms should automate the VAT collection, they have all the data to technically implement it.

geirsson.com•11 days ago

VAT is already collected if a local business purchases online ads from another local ad platform. The current system is just inconsistent.

alexn.org•11 days ago

If an advertiser from EU buys ad space from Meta, it already pays VAT. For example, if I'd promote an ad on FB right now, I'd also pay 19% VAT.

How is it inconsistent?

alexn.org•11 days ago

They even say so on their website. Is there anything I'm missing?

https://www.facebook.com/business/help/133076073434794

geirsson.com•11 days ago

The “Sold to” address is different than the location where the ad is served. The VAT should be charged at the location where the ad is delivered. In the current system, a US company can buy ads from Meta US, deliver the ads in Germany and pay no VAT.

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