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Members of the UK government are seeking to close a tax loophole that currently allows online music, app, and book downloads to avoid the country’s 20% “value added tax” in favor of much lower international tax rates, reports The Guardian. If the push is successful, Google Play customers in the UK will instead be taxed at the appropriate rate for their own country.

However, the new law won’t go into effect until January 1, 2015, so there’s still time for things to change. Supporters of the change say that it will lead to more fair competition among foreign and domestic companies, since UK-based companies are currently at a major disadvantage due to the higher tax rate.

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One Response to “New tax law could see UK Google Play customers paying up to 20% more next year”

  1. furrypotato says:

    We’ve all been very keen on the closing of tax avoidance loopholes so that rich individuals and corporations pay their fair share.
    Just a shame they pick on one that makes the rest of us pay 20% more instead. Idiots.