[Alert] - EU and Non-EU VAT complications

[kandrews]

Hi Sentora Community,

It would seem many small businesses, SME's and Soletraders are completely unaware of the impending EU VAT MOSS legalisation which WILL affect most of us running web or server hosting services as of 1st January 2015.

Both non-eu and EU businesses will now be required to charge consumers (customers not VAT registered) their country's rate of VAT.

You then have two choices:

1. register in each member of state you sell to for VAT returns (28 of them!)
   
2. register in your state for VAT and VAT MOSS 
   

VAT MOSS returns will automatically distribute the collected VAT to each member of state on your behalf. This is going to be an administrative nightmare for all us micro / from home businesses.

---

There is an online petition which if you are in the EU in a country with a minimum VAT registration threshold could protect you from 28 countries worth of fine, rates and legislation:

https://www.change.org/p/vince-cable-mp-...l-products
or the new one:
https://www.change.org/p/pierre-moscovic...le-traders

We need more people shouting about this online and to their local tax offices / MEP's / MPs and other influential people!

Please use any social media (twitter, facebook, google+) to get this trending and raise awareness now. I'm available on PM or the zVPS.uk contact page if anyone needs further information. Twitter hashtags being used include:
- #VATMOSS
- #VATMESS

Disclaimer: I am not an accountant or legal advisor, all advice I give will be to the best of my knowledge and should not be relied on. Please consult a professional accountant if you need professional advice

[Me.B]

You can also setup a company outside the EU no?

[kandrews]

This will still require VAT returns:

http://customs.hmrc.gov.uk/channelsPorta...e=document

[TGates]

Guess I will just deny hosting to EU people LOL

j/k, What a mess! We will have to watch this and see what comes from it.

[Me.B]

Crazy

[kandrews]

HMRC has released a clearer document describing the implications:

https://www.gov.uk/government/publicatio...l-guidance

Looks like all web and server hosting is included in the new rules for definite and under section 5 we would also have the register at our countries equivalent of the ICO (information commission officer's) for DPA.

So non-EU companies i dare say will stop trading to the EU and companies inside the EU will only trade with their country and outside the EU... that's not good business!

[kandrews]

We website with good information and resources has been put together yesterday:

http://euvataction.org/

Have a good read of the resources!

[kandrews]

Online petition up with over 400 sigs since this morning:

https://www.change.org/p/pierre-moscovic...le-traders

Please sign to help!

[jacobg830]

I suppose it should make it harder for all these large organisations to avoid paying taxes in EU countries, it's just a large inconvience for all the small businesses