According to a new report from The Guardian a loophole in the tax system allowed for companies like Amazon, Apple and Google to avoid paying taxes over digital songs, books and apps available on the different online stores. The closing of this loophole means that from now on Amazon, Google, Apple and other mayor companies with online store will have to charge a 20% rate of VAT in the UK.
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.
The increase of the price will take effect on January 1, 2015 and will affect all services (like the ones mentioned previously) that are currently available in the UK. During the time companies were making use of this loophole, the UK has lost more then €2bn a year in VAT, enough to finance the Olympic Games
