Let me kick off with wishing you a very happy 2015, with the awareness that not everyone will be feeling all that jolly, as the EU VAT reforms ring in the New Year.
If you’re adversely affected by the EU VAT reforms, please accept an extra special Happy New Year wish. May some common sense be found that will help you move your small business forward in the very near future.
EU VAT Reforms Closing Small Businesses
Sadly, the burdens being imposed on micro and small businesses mean that thousands of nano, micro and small businesses across the UK and all other EU countries, who simply cannot comply with the new requirements, have little choice (no other viable option) but to close their business, or at least put everything on hold for now. Others are taking alternative actions.
Sign of the Times – You’re Barred
Some businesses are instead choosing the option of barring EU customer purchases. Not a decision taken lightly, after all nobody ‘wants’ to turn away customers voluntarily.
I don’t think that’s enough time to come up with a plan on how to address this… other than to remove the 28 countries that make up the EU from the list of countries I sell to.” source: LoveBug Studios
Until the dust settles and good solutions arise, it means I have to switch off the ability to take digital patterns orders from countries outside of the USA as of December 31st at midnight.” source: Hunters Design Studio
Just two examples, there are many more being collated. As there are ‘extra risks linked to differing rules [or differing interpretations of the rules] between member countries’, this appears to be the only option for some small traders. DISCLAIMER: Please consult your professional adviser.
Turning Frustration into EU VAT Action
Small business owners are quite rightly angry, frustrated, and many are fearful for their families financial futures.
Despite all the worries and concerns, small business owners are getting together to support each other and doing what they can to stay open for business world-wide.
Others are hoping to re-open or start-up sometime in 2015.
Together they’re turning frustration into EU VAT Action!
If you are affected either as a small business owner, or as a buyer of digital products, and want to find out more read these EU VAT ACTION Key Facts.
We know the EU VAT rules are fatally flawed but the good news, if you can extract a positive, is that the rules are changing by the day, so keep up with the changes via euvataction.org or join the Digital VAT 2015 discussion on Facebook.
— Tony Robinson OBE (@TonyRobinsonOBE) January 20, 2015