We’re being asked daily what will happen with the EU Digital VAT / VATMOSS rules, if Britain votes to leave the EU on 23rd June.
We have worked hard to keep the EU VAT Action Campaign campaign true to its roots – being about micro businesses – and staying out of politics, but it’s a crazy bun-fight out there and we need to dispel some of the myths. So here’s a summary of what you need to know, as you decide how to vote in the EU referendum, when it comes to EUVAT.
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Reminder: What Are We Asking For?
The EU Commission has promised to propose legislation in the next few months, to bring in a threshold, but this could still take years to debate.
So in the meantime, we are asking Finance Ministers to bring digital sales under the existing Distance Selling Thresholds for physical goods, as an interim measure. Surely it’s a no-brainer?
The data from the public consultation the Commission ran in December has been published this month and our initial review of it shows that the biggest problem still faced by micro businesses is correctly establishing where their customer is based. 18 months into the legislation and there is still no tech magic wand – and we don’t expect to find one any time soon. That is why we need the thresholds for those for whom the cost of collecting this data would be disproportionate.
Thank you so much for your on-going support. Once the referendum is over, we can all make progress again! And if you want to be involved in the solution to the EUVAT problem, please come and join us over at our super-friendly Facebook group: EU VAT Action.
And if you have comments, questions, or more myths that need dispelling, please let me know, via the comments.
Clare
Clare Josa, Co-Founder Of EU VAT Action