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Online shopping to become more expensive
From January 1, Belgium will increase the amount of value-added tax (VAT) to be paid on all e-commerce, including the downloading of apps, games, music, e-books, movies or software, reports Le Soir. The tax will be owed in Belgium, and not in the country where the provider is located. The VAT will rise from 15% to 21%.
The European Union introduced the measure with an aim to put an end to unfair competition between EU Member States. It is not yet clear exactly how much money the Belgian treasury will collect through the new measure, but combined with an increased tax on plastic surgery and a limit on the lowering of the VAT rate for housing renovations, the Treasury is expected to gain around €10 million.
Most websites have already decided to pass on the price increase to the consumer.