STLTODAY — June 2 — The Illinois Senate late Saturday narrowly approved a 67% hike in the state income tax and imposed $1 billion in new sales taxes, dramatically reshaping the Statehouse’s budgetary stalemate. Dating services are one of the 39 services that would suddenly by subject to the state’s 6.25% sales tax. FULL ARTICLE @ STLTODAY
Mark Brooks: Users pay tax on dating services in the UK and Europe. This is bad news for USA dating services. Your comments please.
The bill apparently died in the house after this article was posted. No worries . . . for now.
The bill apparently died in the house after this article was posted. No worries . . . for now.
Would this have applied to *online* dating services, or off-line dating services based in Illinois?
As a Cdn company, we are required to collect taxes (5% GST) from all Cdn members. However, non-Cdn residents don’t have to pay it, and non-Cdn based dating companies don’t have to collect it, e.g. a US-based company.
So, even had IL passed this bill, would this have affected non-IL based dating companies?
Would this have applied to *online* dating services, or off-line dating services based in Illinois?
As a Cdn company, we are required to collect taxes (5% GST) from all Cdn members. However, non-Cdn residents don’t have to pay it, and non-Cdn based dating companies don’t have to collect it, e.g. a US-based company.
So, even had IL passed this bill, would this have affected non-IL based dating companies?
This Bill may be dead but EU VAT has been required to be collected since 2003 by all companies, including US and Canadian.
All US and Canadian companies need to collect VAT tax from all UK and EU customers. This runs as high as 25% of revenue in some EU countries. If you are a US company and are not collecting VAT from any UK or European subscriptions then you may get a nasty tax bill as per FriendFinder with their multi million dollar liability for not remitting VAT (See Friendfinder’s IPO for details).
Many US dating companies are sitting on a financial time bomb from any subscriptions they collected from UK customers. If you do not remit EU VAT you are breaking the law and subject to severe penalties. Non payment of VAT is a criminal offense and yes there are extradition treaties between the USA and UK.
Mate1 and some other US companies who are active in the UK may receive a rude shock when they finally receive their VAT bill just like Friendfinder.
Any comment by Mate1, Spark Networks or other US companies about EU VAT (and yes btw we do collect and remit VAT, even though we are a foreign company).
The internet is already taxed in the EU, let’s not let it happen to US states. The EU is already bad enough.
This Bill may be dead but EU VAT has been required to be collected since 2003 by all companies, including US and Canadian.
All US and Canadian companies need to collect VAT tax from all UK and EU customers. This runs as high as 25% of revenue in some EU countries. If you are a US company and are not collecting VAT from any UK or European subscriptions then you may get a nasty tax bill as per FriendFinder with their multi million dollar liability for not remitting VAT (See Friendfinder’s IPO for details).
Many US dating companies are sitting on a financial time bomb from any subscriptions they collected from UK customers. If you do not remit EU VAT you are breaking the law and subject to severe penalties. Non payment of VAT is a criminal offense and yes there are extradition treaties between the USA and UK.
Mate1 and some other US companies who are active in the UK may receive a rude shock when they finally receive their VAT bill just like Friendfinder.
Any comment by Mate1, Spark Networks or other US companies about EU VAT (and yes btw we do collect and remit VAT, even though we are a foreign company).
The internet is already taxed in the EU, let’s not let it happen to US states. The EU is already bad enough.
You’d be surprised at how many online dating companies ARE NOT paying tax in the EU.
Even though there’s no getting around the fact that if your customer is in the EU, you HAVE TO REGISTER IN THE EU and pay tax that should be collected from the consumer – I know of at least 3 online dating companies (two of significant size) that are trading illegally.
Sounds like CupidMedia are doing the right thing – we’ve already blown the whistle on two other European-based dating companies who haven’t paid tax where they should and I think you’ll see these companies collapse when they receive the tax bill.
Ross
You’d be surprised at how many online dating companies ARE NOT paying tax in the EU.
Even though there’s no getting around the fact that if your customer is in the EU, you HAVE TO REGISTER IN THE EU and pay tax that should be collected from the consumer – I know of at least 3 online dating companies (two of significant size) that are trading illegally.
Sounds like CupidMedia are doing the right thing – we’ve already blown the whistle on two other European-based dating companies who haven’t paid tax where they should and I think you’ll see these companies collapse when they receive the tax bill.
Ross