By Oliver Griffin
25 March 2015
MEPs, including members of the Liberal Democrat party, are calling on Jean-Claude Juncker – president of the European Commission – to revise EU VAT laws A group of 32 liberal MEPs from 16 EU countries – including the UK and Belgium – have today written to president Juncker, urging him to reconsider new VAT rules which campaigners fear will negatively impact European SMEs. The calls come after new EU VAT regulation was issued in January, requiring VAT on digital services to be paid in the country of the buyer, not the seller. Originally intended to target large multinationals attempting to gain competitive advantages by basing themselves in low VAT jurisdictions, the rules are deemed cumbersome and unrealistic for sole traders and small businesses. Catherine Bearder, a Lib Dem MEP for South East England, said, “When these changes were negotiated over six years ago, the aim was to help small online businesses to compete. Unfortunately, they are now having the opposite effect. “The message from across Europe is clear: the commission must take swift and decisive action to reduce the burden of this legislation on our smallest and most innovative firms. “Digital entrepreneurs will form the bedrock of the EU’s future economic prosperity and competitiveness. We cannot afford to throttle them with excessive regulation.”
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