Experts have claimed that thousands of “kitchen table” entrepreneurs could be forced out of business by a new EU tax law. From today, all companies selling digital products must navigate a hugely complicated VAT system, leading critics to warn that even the smallest businesses may have to hire accountants and spend hours on paperwork, forcing many to close. The new law requires firms to charge VAT based on the country where the buyer lives, rather than where the seller is based. The change means fledgling businesses must now record which European country each customer is from and charge their national VAT rate. They must also keep hold of customers’ home and bank addresses for ten years. It is estimated that 250,000 businesses will be affected by the changes.
Source: Daily Mail
For more on this, see our BKL Briefing of last month.