[steveharriss]

The EU "E-Business Directive" (Council Directive 2002/38/EC) came into effect on 1st July 2003. The effect of this directive is to implement the imposition of VAT in on Internet delivered information or services within the EU. This amounts to a tariff of between 13 and 25 per cent on items such as software or music downloads, any transactions as part of online auctions and subscriptions to internet service providers, sold over the internet anywhere within the European Union.

This Directive applies to non-EU companies and thus if your company is based outside the EU and providing Internet delivered information or services within the EU you should read this as failure to register and account for VAT could render you or your company liable to criminal prosecution for tax evasion, money laundering, false accounting or similar offences.

So GUE aren't playing by the rules and are liable to penalties but, as the importer, it's you they also leave liable to HM Customs and Excise!