Yeah - but same issue for many telecoms companies - and for EU compnaies that may be subject to US reporting under Sabarnes Oxley. Its up to the EU/US to enforce and up to companies to choose whether to comply or not. In my experience, big companies comply, little ones slip through the net...
VAT
OK - here is the scoop.
Data services are an "electronic service" as defined by the new EU Electronic Services Directive - effective 1 July 2003.
This means that VAT is charged based upon where the customer belongs. So if you are resident in the UK you get charged UK VAT no matter who...