Replies (7)
Please login or register to join the discussion.
Restricting e-goods or services to the UK only
"Another way to avoid the rules is to restrict e-goods or services to the UK only and not sell to customers in EU countries."
Which appears to be far easier to say than do, as one of the major problems appears to be collecting the evidence needed to prove the location of the buyer. This either involves technical issues in collecting accurate data, or asking all customers intrusive questions that will put many off buying.
Why #VATMOSS is a #VATMESS for small & micro businesses
There's a lot of confusion and dare I say it, misinformation out there about #VATMOSS so it's great that accountants and bookkeepers are being more vocal about it on Twitter, via blogs and in articles like this!
Paul Lancaster
Sage One UK & Ireland
Authors
Proving to be difficult for Authors whose books are popular in many countries. Still have to calculate VAT on non penny ha'penny sales.
Like a good read? Enjoy this!
Here is a link to a blog from a small trader attempting to register for the new MOSS scheme and a day by day account of the pitfalls encountered. It also has a link to how you actually enrol for MOSS which a lot of people may find handy. The deadline for registration using the UK MOSS scheme is 10th February if any other EU nation sales were made at any time this month, if this deadline is missed the taxpayer will have to register separately in any country in which sales were made or be subject to penalty from those countries for failing to register. They would be able join the UK MOSS from 1 April. It may also be possible that they could join the UK MOSS from 1 February provided that they apply by 10th March but there is no confirmation of this.
Now what worries me is the outcome of the last few days of the blog when they were able, it seems to register for MOSS. HMRC found a work-round for early criticism of the new rules in allowing a person to register for VAT for digital services below the threshold and submit nil UK VAT returns as well as the new MOSS returns, completely contrary to the existing legislation I might add. This particular business is, however, already registered for VAT, even though for some years their turnover was below the deregistration threshold, and so could have deregistered but didn't. They asked if they could now use the appropriate description and stop accounting for VAT on their UK sales and they have been told that they can! This strikes me as a very dangerous situation to be in - has anyone else got clients with similar problems?
I have duplicated this in another thread written by Les Howard so my apologies if it comes up twice...
Crazy EW
So now EU want's to finance their austerity by this ridiculous method. This is what happens when attention is not given to fundamentals & taxes are not collect in time on your land. No need to go far more technical; what surprises me is which idiot came up with this idea; without having any vision on how this is going to affect small business.
um, no you probably can't restrict sales to other EU countries
HMRC have said that this might contravene anti-discriminatory legislation. And if I were one of the smaller EU nations, I would be lobbying hard that this was the case, because otherwise they will find a lot of the internet shut to them quite quickly. There are get outs in the anti-discriminatory legislation of course, but it isn't clear whether not wanting to carry the burden of paying tax would be seen as a good reason. Businesses should use caution and get further advice if they are considering this option. Though of course nothing stops non-EU sellers doing this. And I was denied my first online purchase just a few days ago for VAT reasons b
y a Canadian seller,
Small Business
Small business owner are always worried about certain changes in the accounting and financial system. VAT issues are also one of them; the increase of VAT may be the biggest headache for small business owners; in every financial year we have found that small business organizations are suffering from VAT and other issues and to overcome these issues they need professional support from business organizations and financial institutions through which they are able to develop their business productivity.