Hoping an international tax expert is lurking...Who gets the tax?
Posted: February 14th, 2019, 2:29 pm
I wonder if any Fools know the answer to today's vexatious issue:
A video streaming system is installed on an aircraft flying from Singapore to Paris. The system is enabled once at cruising altitude, miles from Singapore probably.
A passenger, accesses the system over WiFi and pays, through the system, a mere $5 for the service and enjoys films etc until the plane starts descent and the system is disabled.
Once the plane lands, the $5 is sent through a payment maze and ends up settled in the bank account of UK based “Company Z” who handle funds as the merchant of record for the business.
Is sales tax due on the $5? If due, where is the sales tax paid?
A video streaming system is installed on an aircraft flying from Singapore to Paris. The system is enabled once at cruising altitude, miles from Singapore probably.
A passenger, accesses the system over WiFi and pays, through the system, a mere $5 for the service and enjoys films etc until the plane starts descent and the system is disabled.
Once the plane lands, the $5 is sent through a payment maze and ends up settled in the bank account of UK based “Company Z” who handle funds as the merchant of record for the business.
Is sales tax due on the $5? If due, where is the sales tax paid?