If you’ve been wondering why I haven’t blogged in over a week, just look at the UK newspapers…
Given I’ve committed hundreds of hours, thousands of words and an incalculable amount of energy and concentration as part of the EU VAT Action team trying to secure meaningful reform of the 2015 EU digital VAT rules, you won’t be surprised to learn that was uppermost in my mind. Had this collectively disastrous referendum decision thrown all that hard work in the bin?
The short answer is no, for which I am profoundly thankful. Clare Josa and I went into London yesterday for a meeting with our Whitehall contacts to discuss the Brexit vote implications. We shot a quick update video in Green Park immediately afterwards, which you can find here. To summarise the key points arising, I’ll quote from the EU VAT Action site, which is where you should link to spread the word to other interested parties.
The UK is still in the EU and has the same rights and obligations as before, so EU Digital VAT continues to apply, worldwide, as before.
The EU Commission still intends to propose the promised legislation for a threshold and a simplified ‘soft landing’ area above that threshold, by the end of this year. This is a huge achievement, since a year ago they did not believe there was a need for either of these.
Another major achievement is confirmation that the Commissioner proposing the Digital Single Market legislation WILL include a provision to permit geoblocking for the purposes of reducing legitimate administrative burden, such as EU Digital VAT
The UK will continue to have a voice in the EU Digital VAT negotiations, whilst the UK is in the EU. However, once Article 50 is invoked and the formal leaving process has started, other Member States may choose to give less weight to our opinion
This is an issue because the UK has been the most vocal country over the new EU Digital VAT rules. So it is more important than ever for micro businesses outside of the UK to make sure their Finance Ministers, Members of Parliament and Members of the European Parliament are fully aware of the challenges you face with these rules. We are happy to help you get creative in making your voice heard, if traditional routes aren’t yet working for you. (See Action Challenge, below)
Whatever the outcome of the UK’s EU negotiations, the OECD (Organisation for Economic Cooperation and Development) trend is for more countries to implement similar place of supply rules to those from January 1st 2015 in the EU. This means that you need to keep taking actions to upgrade your business systems, so that you can prove where your customers are located.
Whilst the OECD recognises the need for thresholds and simplifications for the smallest businesses, it is imperative that we keep up the pressure on our shopping cart providers and payment processors, to supply us with the data that we need, to be able to comply.
The VATMOSS system in the UK will remain in operation for the duration of our negotiations. What will happen to it after that, no one knows. But please don’t make major business decisions based on guesswork, at this stage.
Next steps: we will continue to give you a voice within the UK government and the wider EU. The campaign has already achieved recognition in Whitehall, Brussels and at the OECD. Together, we have achieved the breakthrough that these decision-makers now understand that micro businesses – especially the smallest that are running on a laptop from a kitchen table – must be considered when changing legislation.
None of this could have been done without your support and the actions of the thousands who have supported the campaign. Thank you.
And here is the action we need you to take, please: And we need your support now, more than ever. We have been asked to put together a technical paper for the OECD Working Party on VAT, summarising the specific technical challenges that micro businesses have faced with complying with this legislation, over the past 18 months. So:
Please write to your Finance Minister, MEPs, Member of Parliament and copy to us (euvat @ clarejosa . com) to tell them:
Specifically why you cannot comply with the EU Digital VAT rules – or why it is difficult for you.
This will help to keep your problems top-of-mind, despite the background noise, and it will encourage Finance Ministers to vote to support the threshold and ‘soft landing’ legislation, when it is proposed.
So that’s the situation there. Phew.
As for the rest of it…
I didn’t think I could be more disgusted by Nigel Farage by now – but he managed it with his antics in the European Parliament. I’m thinking back to our VAT campaign visits to Brussels where I was able to see at first hand just how hard our MEPs and their teams of all parties – except UKIP who were an idle, know-nothing embarrassment to the entire UK delegation – have spent years working on so many vital issues in the interests of us all.
The Leave vote has thrown all that time, effort, passion and commitment from so many people into the bin for what’s already turned out to be a pack of lies.
Because Tory posh boys were more concerned with playing their power games than really thinking hard about the possible outcomes and the reality for the rest of us.
And now they are in absolute denial – or are totally oblivious – to the very real commercial damage this is doing from biggest to smallest businesses while the UK’s standing in Europe has already suffered more damage than we can hope to make up in a decade.
Meantime, the Parliamentary Labour Party has decided now’s the ideal time for a game of King of the Castle. When someone, anyone should be demanding answers from any and every Tory leadership candidate every hour on the hour to expose them for the charlatans they are. Yes, okay, I know it’s a lot more complicated than that – but honestly, the timing?!
Are there *any* politicians in England at the moment looking out for the national interest in the current crisis rather than serving their own narrow interests and ambitions?
I say England because Nicola Sturgeon and Scots MEP Alyn Smith have been showing how these things should be done!
What of the Greens? Plaid Cymru? LibDems? There’s talk of a progressive coalition. I would dearly love to see that gain some traction. And yes, I am in favour of proportional representation, even at the price of UKIP MPs. Having them in parliament would very rapidly expose the inadequacy of their position and skills for one thing.
Where do we go from here? As far as the big picture’s concerned, I honestly have no idea.
At the personal level, I’m going on holiday for a week with my husband, to the Lake District. We’ve been trying to arrange a break since March but what with one thing and another…
Anyway, I intend to have as much downtime as possible, especially from social media, and that’s why I’m disabling comments on this particular post.
When we get home I intend to get back to writing, and blogging about books, writing and the more usual aspects of my life!
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