Molly has won cross party support for an amendment exempting small and microbusinesses from having to use the VAT mini-one-stop-shop system (VATMOSS).

The VATMOSS system was first introduced in 2014 for digital businesses and the Commission plans to extend it as outlined in their Action Plan earlier this year. The European Parliament’s VAT report, voted on last week, supports a VAT exemption for small and microbusinesses. This support from MEPs follows two years of lobbying for an exemption from Molly. Speaking at a plenary session of the European Parliament, Molly said:

“For several years now the VAT rules in the EU have been out of touch with small businesses and the way in which citizens make a living.

“As an MEP for South West England I have spoken to several small businesses in my region really struggling or even going out of business, due to changes in the VAT system which came into force in 2014. I have raised time and time again this issue with UK ministers, as well as Commissioners and other Commission officials, putting forward an exemption for small businesses under €100,000.

“I am so pleased that in the Commission’s VAT action plan they have included my suggested threshold, and I am delighted that the European Parliament has endorsed this.

“We must ensure that the VAT regime works for people, not against them, in our overall goal of tackling tax fraud.”

Notes

[1] European Parliament’s report: towards a definitive VAT system and fighting VAT fraud See points 42 and 43.

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