You would have to have been living in a bubble in early December not to have noticed the outpouring of anguish by a mighty handful of micro-businesses upon discovering, somewhat late in the day, that the new arrangements for VAT on electronically delivered services (AKA 'Mini One Stop Shop – MOSS') would interrupt their VAT-free way of life forever. These very small businesses, often run by one or two entrepreneurs, do not account for VAT because their turnover is below the UK mandatory annual threshold for VAT registration which, at the time of writing, sits at £81,000. The new regime, which applies from 1 January 2015, requires businesses of any size to register for and pay VAT in member states of the EU where electronically delivered services have been sold to their residents on a B2C basis. The threshold for this is 'nil'. It requires all suppliers to register for MOSS and complete quarterly returns.
Why do we persist with the high VAT…
You would have to have been living in a bubble in early December not to have noticed the outpouring of anguish by a mighty handful of micro-businesses upon discovering, somewhat late in the day, that the new arrangements for VAT on electronically delivered services (AKA 'Mini One Stop Shop – MOSS') would interrupt their VAT-free way of life forever. These very small businesses, often run by one or two entrepreneurs, do not account for VAT because their turnover is below the UK mandatory annual threshold for VAT registration which, at the time of writing, sits at £81,000. The new regime, which applies from 1 January 2015, requires businesses of any size to register for and pay VAT in member states of the EU where electronically delivered services have been sold to their residents on a B2C basis. The threshold for this is 'nil'. It requires all suppliers to register for MOSS and complete quarterly returns.