i Delphine’s purchase of the lazer machineRELVENT LEGISLATIONEU VAT DIRECTIVE TITLE V CHAPTER Essay

i. Delphine’s purchase of the lazer machineRELVENT LEGISLATIONEU VAT DIRECTIVE: TITLE V, CHAPTER 1, SECTION 2, ARTICLE 33, 34According to the study, the supply of the machine is done from Poland to Croatia. But, the supplier is registered in Italy and does not have a PE in Poland and is only used as a warehouse. Because the order has been placed online, the threshold limit applies. If the value of the product lies within the threshold limit of annual sales of Italy for Croatia, the VAT rate of Italy will be charged.

But, if the threshold limit exceeds, Croatia’s VAT rate would be charged.ii. Delphine’s purchase of the ebook.RELEVENT LEGISLATIONEU VAT DIRECTIVE: TITLE V, Chapter 3, Section 2, Subsection 5, Article 56The purchase of the book has been done on an online downloadable ebook. Hence, the vat will be charged where the customer is established. In this case, the customer is domiciled in Croatia. The Croatian VAT rate will be applied for this transaction.

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iii. Nicole’s purchase of the lazer machine.RELEVENT LEGISLATIONEU VAT DIRECTIVE: TITLE V, CHAPTER 1, SECTION 2, ARTICLE 33, 34The purchase of the machine has been done online, so the distance selling of threshold applies, as the buyer is a consumer and not a business entity. The machine ordered by Nicole is similar to the machine ordered by her friend, so the price of the machine will also be similar to EURO 1600. The purchaser is based in Cyprus and the machine has been shipped from a warehouse in Belgium. As per the study, the agent of the supplying company is located in Belgium who conducts regular meetings and promotional events with delegates of different EU countries. This makes Belgium a Permanent Establishment (PE) for LazerMiracle Ltd. Therefore, if the annual distance selling threshold for Cyprus exceeds after this transaction, the company is required to register in Cyprus and charge the VAT rate of Cyprus for that machine. But, if the threshold does not exceed the limit, Belgium’s VAT rate would be charged.iv. The beauty salon in Malta paying for the installation of new anti-aging facial machines.RELEVENT LEGISLATIONEU VAT DIRECTIVE: TITLE V, CHAPTER 1, SECTION 2, ARTICLE 36In this transaction, the supply has been made from Poland to Malta. But, Poland is only used for warehouse, not a PE. The price of the machine is 88,999, which is more than the threshold limit of supplying goods to a particular country for Italy. If not registered already, now the company has to register in the country of destination of supplied goods and charge the VAT rate there on all future sales of goods in that particular country. The VAT will be charged where the goods are being installed which is Malta.v. The beauty salon in Malta paying for purchase of microdermabrasion machines.RELEVANT LEGISLATIONEU VAT DIRECTIVE: TITLE V, CHAPTER 1, SECTION 2, ARTICLE 36In this case, the purchaser of the machine is from Malta and the permanent establishment of supply is Italy. The machine is being transported from Italy but it will be installed by the local technicians of Malta. The cost of the machine is 342,000, which is above the threshold limit of Italy. So, the VAT for this transaction will be charged at Italy’s VAT rate. vi. The beauty salon in Malta paying for training for IT trainees.RELEVANT LEGISLATIONEU VAT DIRECTIVE: If you sell services to businesses based in another EU country you don’t usually need to charge your customers VAT. Your customers will pay VAT on the services received at the applicable rate in their country (using the reverse charge procedure).In this situation, the company registered in Italy is supplying services to the employees of the company situated in Malta. The company has opted to pay for all the training fees to the Italian Company. But, LazerMiracle Ltd. does not have to charge the vat for the services because the buyer will pay the VAT on the services received at the appropriate applicable rate in their country.vii. RELEVENT LEGISLATIONEU VAT DIRECTIVE: Chapter 3, Section 2, Subsection 2, Article 45For the service of private training to the employees of beauty salons which is based in Malta, the VAT rate must be charged at the rate that applies in Italy which is the registered establishment of the supplying company. SECTION 5: ETHICSPart a)As the company is planning to use social networking and online chat forums to connect with mothers by pretending to be normal users to discuss about parental issues and retrieve personal information of mothers and their kids to help them to market their products more effectively. However, there are multiple ethical and legal issues related to this scenario. Ethical Issue: Pretending to be normal users on social media platform and online chat forums to gather personal data for marketing purposes.The ethical issue in this case is clear, as the company is planning to allocate a customer networking team which will be pretending to be normal users as any other person on online websites or chat forums to know more about customer’s perspectives and information. LawThe company will face various legal issues because of their kind of approach towards getting the customer information and the way of marketing their product is against the law. The offences related to the case are: DATA PROTECTION ISSUEAccording to General Data Protection Regulation (GDPR) Data Protection Principle:Consent: The data subject has given clear consent to data collector to collect and process their personal data for specific purpose.Transparency: For data collection or data processing from individuals, the consent needs to be open, clear and honest from the start of data collection to every individual regarding the intent of collection of their personal data, why the data is being collected and how the data will be used. USE OF DATA FOR MARKETINGAccording to General Data Protection Regulation (GDPR) Chapter 2- Principles, Article 7- Conditions for Consent. The article states that: The data subject has consented to collect and process his or her personal data. The data subject has received consent declaring the intent towards collection of data in an easily accessible form, using clear and plain language. The data subject shall have the right to withdraw his or her consent at any time. ETHICAL THEORYUtilitarianism The act done by the manager is right as mothers will be getting discount on the toys for their kids. The offer to provide personal service to mothers as the products advertised to them are greatly related to their lifestyle. By effective use of this marketing technique, the company will be able to market their products more effectively and will provide financial gain to the company.Deontologism The way to collect information of individual is false They marketing team are intentionally pretending to be normal users so that they can deceive people to get their personal information. CODE OF CONDUCT ADDITIONAL PRINCIPLEPart b)The company has ordered and received thousands pound of worth of soft toys which looks similar to food items. The toys are made up of plastic and softened with chemicals. But soon, the manager realizes that toys are not safe or may pose a danger to children if they bite or chew them. Now, because the investment made in toys is large, the manager thinks of putting the toys for sale so that he can retrieve his investment as much as possible and also to pour joy to many kids. This decision can give rise to ethical and legal issues if the manager sells the soft toys even on discounted price. ETHICAL ISSUEThe ethical issue related to this case is the decision made by the manager to sell the soft toys even after knowing the threat it can impose on children’s health. LAWConsumer protection law (uk or Europe will apply?) ETHICAL THEORYUtilitarianism- According to utilitarianism, the danger imposed to children from the toys is high. Applying sale on toys, to manipulate customers to buy toys for children. Deontologism- According to deontologism, the manager has invested a lot of money in the product and wants to recoup his investment as much as possible. CODES OF CONDUCTAccording to British Computer Society (BCS) Codes of Conduct:1. Public Interest a. You shall have due regard for public health, privacy, security and wellbeing of others and the environment.2. Duty to the Professiona. You shall accept your personal duty to uphold the reputation of the profession and not take any action which could bring the profession into disrepute. ADDITIONAL PRINCIPLESReligion According to Bible: do unto others as you would have them do unto youETHICAL ADVICEThe advice to manager is to stop selling toys on discount to people for children. As it is ethically and legally wrong. The consequences of selling toys can be miserable. It will not only have negative impact on the health of children but also on the business if people realize the harm to children has been done by the soft-toy. It will be better to use the toys for other things which does not bring harm to people or environment.

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