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EU: service prices must include VAT

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Curt:
According to the latest news letter from Agnitum:

According to the recent EU regulations, service providers are obliged to indicate prices including value-added tax (VAT)
--- End quote ---

Good news!

Only, now I need to understand  what is a service, and what is not?

bgd77:
From Wikipedia:
"A service is the diametrically opposed non-material counterpiece of a physical good."
http://en.wikipedia.org/wiki/Service_(economics)

For example: transportation, healthcare, education are services while a good is something material that you purchase: a car, food etc.

Is there any economist that can explain better?

f0dder:
Curt: I'd say that phone companies, internet service providers, airlines etc. are offering services as opposed to goods. I thought the plane ticket VAT thing had already been fixed a while ago, though? :)

Curt:
- not really. From a purchase today from SWREG/DigitalRiver:








Right away I am not sure how to complain to SWREG.

bgd77:
Is the site (or the store) in the EU? The only EU countries that have a VAT of 25% are Denmark and Sweden. If I am not wrong, any site/store sells with the VAT and obeys the rules of the country in which it resides.

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