Brussels, 06/06/2000 (Agence Europe) - The European Commission is expected to present on Wednesday its proposal on VAT for purchases made on the internet. Based on the generally accepted principle that electronic services should be taxed in the place of consumption, this proposal is meant to correct the existing situation, which is very disadvantageous to European companies. Foreign companies would have to pay VAT when they sell their services in the EU, which is not the case at present. Inversely, European companies would be exempt from VAT on their foreign sales. Foreign suppliers of electronic services, which have sales of more than EUR 100,000 to private EU consumers, will have to register in one of the Member States in which they have customers and pay VAT in accordance with the legislation of that state.