] Either A) Institute a tax structure with so many tiers,
] exceptions, tables and loopholes (let's not forget those
] loopholes!) where no-one really knows if they are going
] to be taxed or not, causing them to refrain from engaging in
] commerce in your particular (county, city, state, country -
] your choice)
One article I read said that compliance with the European VAT requirement would probably be "voluntary" on the part of any company, since enforcement would be such a nightmare. Only companies seeking public status or some type of official governmental approval would be incentivized to comply.
RE: Internet Law - Taxation & 'Nexus'