Anneliese Dodds MEP

The South East's Voice in Europe

New VAT rules hurting digital SMEs

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Anneliese has urged the Commission to look into concerns around new VAT rules on digital services, books and papers. 

The new rules have a noble aim- to prevent big corporations from dodging tax by stopping them from diverting internet sales through countries with low levels of VAT. The so-called 'VAT MOSS' system (VAT Mini One-Stop Shop) has been introduced to help small businesses comply. However, many have found the new system impossible to use.

Over 800,000 businesses in the South East employ less than 9 people, with many trading services overseas through the internet. Previously businesses with a small turnover were exempt from VAT, but the new rules have changed this, and many are struggling to do the right thing under the new system.

The European Commission Vice President responsible for the Digital Single Market appeared in the European Parliament this week to discuss the new system, but failed to provide a solution to small businesses' concerns, despite having been pushed by Anneliese and others for more information.

Anneliese said: “Yet again, Commissioner Ansip has failed to give us any detail on what he plans to do about the VATMOSS mess.  Labour MEPs have been lobbying him since before Christmas to do something about this, and we've had nothing but delays and vague answers.

"For the thousands of our constituents who have written to us in desperation about these new rules, simply saying 'we will look at this in 2016' is not good enough. People are worried about their very livelihoods here.

"We didn't get the answers we needed yesterday from Commissioner Ansip, so I have immediately written to him again to get a clear decision on what happens next.”

You can read Anneliese's letter to Commissioners Asnip and Moscovici here.

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