UK’s new budget and its implications for Internet taxes
The UK has released its new budget, which will have important consequences for Internet taxation. ‘Micro-entrepreneurs’, who sell their services online or rent their homes through the Internet will be relieved from taxes. According to chancellor George Osborne, the measure, which has now been dubbed ‘the Airbnb and eBay tax break‘, or ‘Airbnb allowance‘, means ‘a tax break for the digital age and at least half a million people will benefit.’ At the same time, the chancellor is giving tax inspectors new powers to hold major overseas sellers accountable for not paying their VAT on big eBay and Amazon sales. This way, the treasury hopes to collect 875 million pounds in lost VAT receipts.