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Call for single EU threshold for VAT

A single EU threshold should be introduced for VAT, below which small businesses would not need to register for VAT MOSS, according to the business organisation Enterprise Nation.

The call forms part of the group’s 2015 ‘small business wishlist’ and follows the introduction on 1 January of new place of supply rules for VAT, affecting those businesses supplying digital services to consumers within the EU.

Under the new system, VAT on digital services (including broadcasting, telecommunications and e-services) are payable in the consumer’s country, rather than the supplier’s country.

The new VAT Mini One-Stop Shop, or VAT MOSS, scheme also came into effect on 1 January, with the aim of reducing administrative burdens on businesses.

However, Enterprise Nation is arguing that the additional costs and administrative burdens of the new regulations are deterring small businesses in the UK from selling cross-border digital services.