Get Britain Out latest blog explores the harmful impact of recent EU VAT reforms on small businesses and to women entrepreneurs:
“The EU makes a point of seeming to champion the empowerment of women. But scratch beneath the surface, and the EU’s commitment to improving the lives of women does not bear scrutiny. Whether it is imposing quotas on company boardrooms, belittling women’s ability to succeed in work on their own merits, in practise the EU’s efforts do more harm than good.
A prime example is new VAT rules which came into force on 1st January: they will affect businesses selling ‘digital services’, meaning the sale of everything from e-books to images to online recipes. Much of this work is done by women from home while their children are either at school or in bed.
It means the payment of VAT will be determined by the country you sell to rather than where you are supplying it from. Many of these businesses would not normally even need to register for VAT. They will no longer benefit from the UK’s high VAT threshold of £81,000, but must now subject themselves to a labyrinth of paperwork, registering to 28 VAT regimes in Europe whether they sell to European customers or not. It also means they will pay different rates of VAT depending on where their customers live, meaning their tax bill will be unpredictable – let alone the complications of overseas bank transactions.”
To read the rest of the article on UKIP Daily, click here.