I just learned that my country (Israel) is planning to introduce VAT on electronic services (software/games/ebooks/etc) and that kind of got me concerned.
Not because of the extra 17% that I might have to pay now, but mostly because of the chilling effect it could have our local e service market.
My concern is that instead of having to go through the process of filing tax forms with some tiny foreign country, many non Israeli companies might just decide to not do business with Israeli customers.
After doing a little bit of research, I learned that in fact we’re nowhere nearly the pioneers in this. At this point, over 30 countries have already introduced similar legislation, and it has been active for quite some time now.
So, what do you think?
Also, if there are any South Koreans/Norwegians/Australians or any other nationals of countries where such a tax has been introduced - could you share your experience? How did it affect your e-service experience?