Wednesday, June 30, 2004

Luxemborg based for Itunes

Things are hotting up in Luxembourg. Already well known as a financial centre and the leading upload point for many of Europe's Satellite Digital Radio and TV services, Luxembourg is fast becoming a hub for locating a company's European e-Commerce operations.

There is a financial incentive. Recent EU regulations call for B2C operators to collect European Sales tax, or Value Added Tax, on sales of products and services delivered over the
Internet to European end users. As Luxembourg has the lowest level of VAT of
the 25 EU members, it is the logical choice for US companies to set up in
Europe. Microsoft Corp, Skype and Time Warner's America Online unit recently
announced plans to run their European operations from Luxembourg. And now
Apple iTunes has established a company here.

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