Commission Question – Subject: VAT mini one-stop shop (MOSS) rules The new VAT mini one-stop shop (MOSS) rules that came into force on 1 January 2015 may be well-intentioned in terms of ensuring that multinational companies pay their fair share of taxation. However, small businesses which trade throughout Europe will now find that their costs are dramatically higher. Some of my constituents in the North East of England (the area with the highest unemployment anywhere in the UK) advise me that this is so serious that they are likely to go out of business. One of the key problems is that businesses below the UK VAT threshold will now become subject to VAT, making them uncompetitive when trading in other Member States of the European Union. 1. Would the Commission please review these rules as a matter of extreme urgency? 2. Would the Commission consider a proposal to exempt businesses with an annual turnover of less than EUR 1 million from these rules?

Question to the Commission  for written answer E-000254/2015

Jonathan Arnott (EFDD)

Subject: VAT mini one-stop shop (MOSS) rules

The new VAT mini one-stop shop (MOSS) rules that came into force on 1 January 2015 may be well-intentioned in terms of ensuring that multinational companies pay their fair share of taxation. However, small businesses which trade throughout Europe will now find that their costs are dramatically higher. Some of my constituents in the North East of England (the area with the highest unemployment anywhere in the UK) advise me that this is so serious that they are likely to go out of business. One of the key problems is that businesses below the UK VAT threshold will now become subject to VAT, making them uncompetitive when trading in other Member States of the European Union.

  1. Would the Commission please review these rules as a matter of extreme urgency?
  2. Would the Commission consider a proposal to exempt businesses with an annual turnover of less than EUR 1 million from these rules?

 

Answer given by Mr Moscovici on behalf of the Commission (26.2.2015) E-000254/2015:

The Commission would refer the Honourable Member to its answers to written questions E-10405/2014 and P-000460/2015.

 

 

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