Reference no: EM132265634

TAXATION Assignment -

LazerMiracle Ltd is a small company registered in Italy where it also has its office, however, it's website is hosted on servers located in the UK. The company also has three warehouses, located in Italy, Poland and Belgium. It also has an agent in Belgium who regularly conducts business meetings and promotional events with delegates from European Union member countries. The website offers items for sale or hire, as well as digitized goods. On 20th October 2018, Delphine, a stage actress living in Croatia hired an age defying lazer machine from LazerMiracle Ltd. The lazer machine was sent to Croatia from the warehouse in Poland.

After one month of using the lazer machine, Delphine asked the company to sell the machine to her. She was informed that the full price would be (Euro1600 + vat). She was also offered a discounted price (Euro 18 + vat) on an online downloadable ebook called "Secrets of Lazer treatment". Delphine told her friend Nicole (who lives in Cyprus) about the machine. Nicole decided to also order a similar machine online. Nicole's machine was shipped to her from the warehouse in Belgium.

LazerMiracle Ltd also supplies items and services to beauty salons. In January 2019, they concluded negotiations with a new beauty salon located in Malta for the following:

(i) to install new anti-aging facial machines at a cost of Euro 88,999 + vat. They will be sent from the warehouse in Poland.

(ii) to supply microdermabrasion machines at a cost of Euro 342,000 + vat. They would be sent from Italy and installed by local technicians.

(iii) to provide consultancy services to train beauty consultants at a cost of Euro 32 + vat per hour for each trainee. The salon offered to pay for 27 hours of training for each trainee.

LazerMiracle Ltd informed all trainees that they could receive additional private training (to be paid for my each trainee) at a reduced hourly rate of Euro 22 + vat.

(a) Advise LazerMiracle Ltd on where it is liable for tax on its sales income.

(b) Advise on which country's vat must be charged during the following transactions.

Please identify any relevant legislation especially the EU Vat Directive.

(i) Delphine's purchase of the lazer machine

(ii) Delphine's purchase of the ebook.

(iii) Nicole's purchase of the lazer machine.

(iv) The beauty salon in Malta paying for the installation of new anti-aging facial machines.

(v) The beauty salon in Malta paying for purchase of microdermabrasion machines.

(vi) The beauty salon in Malta paying for training for it trainees.

(vii) Trainees in Malta paying for private training.

Note - It's based on UK/EU law, legislation. Answer should be in essay type and cite all relevant UK/EU laws and legislations.

Attachment:- Assignment Files.rar