Freeserve, which is owned by Wanadoo of France, must pay VAT on
its services. Its complaint is that its biggest rival, AOL Time
Warner, is at a competitive advantage because ISP based outside the
European Union does not have to pay VAT. Freeserve is calling for a
level playing field among ISPs for tax purposes.
The Times reports that Freeserve issued its threat in a letter
to the Customs and Excise Minister Paul Boateng. The company has
also complained that its letters to E-commerce Minister Douglas
Alexander received no reply.
