Urgent action needed to end the Vatmoss devastation

19-May-2015 @ 9:45

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Syed Kamall Syed Kamall

Amjad Bashir Amjad Bashir

Conservative MEPs today issued an urgent call to the EU and its Governments to address devastating problems caused by new rules for VAT collection.

They are concerned that the so-called Vatmoss rules is driving small-scale online entrepreneurs out of business by obliging them to collect and process VAT payments, even if they conduct only a tiny amount of overseas trade.

Vicky Ford MEP, Conservative spokesman on the single market, said tackling the Vatmoss mess would require a unanimous decision by all the EU's finance ministers – but that must happen and happen soon. She urged: "Don't wait, next year will be too late -  our entrepreneurs need us now"

She was speaking in  a debate at the European Parliament in Strasbourg, secured through pressure from the European Conservatives and Reformists Group, led by Syed Kamall MEP

Mrs Ford said: " If Europe is to prosper and grow we must support small businesses and make sure that the single market is fit for purpose in a digital age.

"These rules might work for big businesses but have had a devastating impact on microbusinesses.  Entrepreneurs face huge bureaucracy and crippling costs just to collect tax which can add up to be less than a euro.

"A recent survey of 2,000 small companies says a quarter now block overseas sales and a fifth have stopped selling altogether.

"They are no longer earning money - so authorities are collecting no tax at all.

"We need to sort this out, and it needs to be done quickly – and the easiest solution is an exemption, a threshold, for small businesses.

"This needs unanimous support from finance ministers across the EU.  I hope they will take urgent action."

 

 

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