Today and tomorrow, the European Parliament will be debating –
– the problems they’re now aware of, relating to the new regulations on cross-border digital sales now needing to be taxed at the VAT rates applied in the customer’s country rather than the sellers.
– the impact this will have on hopes for a digital single market across Europe.
Since most companies are avoiding the many and varied problems with this new system by blocking sales outside their own country, ecommerce across Europe looks to be massively set back.
Thanks to 6 months of intensive lobbying, the EU Commission and various coalitions of MEPs now recognise the need –
– to review and revise these regulations to make them fit for purpose
– to establish a turnover threshold below which businesses are exempt from the frankly ridiculous costs and other burdens of compliance.
This really is a tremendous achievement when you consider that when this news broke last November, we were being told not to worry, the VATMOSS system had it all sorted out and everything would be fine…
HOWEVER the EU Commission are still talking in terms of a review process leading to new proposals which will take at least 2 years to see meaningful change.
The MEPs who’ve been most active supporting this campaign are making it clear that such delay is unacceptable with digital traders already forced to restructure their businesses or shut up shop.
What we need is an interim suspension while that review process is underway.
The more voices that support them, the better the chances of getting that suspension.
Please contact your MEPs – and if you get a stupid form letter full of Treasury waffle, send a reply straight back saying that’s unacceptable!
If we don’t get any immediate relief from the European Commission, then we need the UK Parliament to act. There is provision in law, and precedent, for an Extra Statutory Concession to save UK businesses from the destructive effects of this legislation.
Even though Parliament’s not yet sitting after the general election, MPs are in their offices, sorting out their priorities. You can help make sure this issue is high up on your MPs agenda. And if you get a stupid form letter full of Treasury waffle, send a reply straight back saying that’s unacceptable!
Consider contacting your local press and media, as well as national newspapers and broadcasters. One letter or email will probably get filed as trivial. A whole batch of letters or emails on the same topic suggests there’s a story to be had – and the UK’s relations with the EU is very much a hot topic at the moment.
There’s a whole lot of information available over at the EU VAT Action website now.