joined:June 17, 2002
You are not alone zarathustra2011. Even accountants are confused.
This was indeed designed to stop big companies abusing the different VAT levels but as usual: bureaucrats that have no idea of technology, who possibly took advice from technocrats that have no idea of bureaucracy, came up with this mess.
So many people have now said they are going to close down in the new year. Many will be forced to trade with third party sites such as Amazon. That is so ironic!
This week HRMC clarified a few points but it's still not right. Too many small businesses will be ruined by this and something needs to be done.
I still think the vast majority of businesses do not even know about this. The word has just not got around.
HMRC are still refusing to admit they only consulted with big business and are doing nothing to address the issue.
Some campaigners are starting to get heard in media. Local newspapers are taking up the issue as is BBC Radio 4. It's a start but the main news channels need to take this up too. It so sad that so many businesses do not know about this and yet after February the 10th they could get a knock on the door from HMRC VAT, or the Polish Tax Administration. Action
1. Keep up to date via the #VATMOSS tag and [euvataction.org
2. Sign the new EU petition (via euvataction)
3. If you are in the UK write to your MP, your MEPs, and Vince Cable via DBIS (the writetothem.com site simplifies this process)
4. Ask your local newspaper to highlight the problem to your business
5. Tell your customers! Ask them to do 2. at least Data Protection
One misleading piece of information HMRC gave out this week is that as you have to record PI for 10 years you have to comply with DPA and register at the ICO site. This is so not true.
The ICO site states that if you are only keeping names, addresses, emails for admin purposes then you do not have to register at all. This is something businesses not affected by VAT should adhere. You really don't need to do this if the purpose is purely for record keeping. Future
The new VAT rules are for downloads / services at the moment. But they have stated this will soon be rolled out to all types of selling in the EU. It is us download software / e-books / service sites first, physical products next.
What are the US going to do about this? What if the US tax authorities decided it's a big money earner and start charging EU traders individual state's sales tax?
[edited by: Frank_Rizzo at 10:45 am (utc) on Dec 13, 2014]