EC Consultation on e-commerce rules for micro-businesses

December 2015

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The Commission recently launched a public consultation on the impact of the new place of supply rules on e-commerce transactions.

Legislative proposals will be introduced in 2016 once the consultation findings have been evaluated.

The EC is keen to introduce a threshold that would exempt smaller businesses from having to use the new MOSS scheme to account for intra EC e-commerce transactions.

This is partly a reaction to concerns voiced by small businesses, particularly those in the UK, that were until now not required to register for VAT because they traded under the UK VAT turnover threshold.

You may have noticed the recent criticism in the national press.  Hyperbole laden articles describing the new VAT rules as 'idiotic' and 'hare-brained'.  The reality is that the UK's registration threshold is much more generous than that in all the other EC member states and as such most EC businesses supplying e-services would, unlike their UK counterparts, have alrady been daclaring VAT on e-services before the rule changes.


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