The new EU VAT rules will cost British SMEs £180 million of red tape
According to a consulting company, due to the EU’s comprehensive VAT reform on sales outside the group, e-commerce sellers in the UK will face a red tape saving cost of £180 million.
This New rulesIt will be launched on July 1, and its original purpose is to prevent annual value-added tax fraud by non-EU e-commerce sellers (many of which are located in China), and it is estimated to prevent 7 billion euros of fraud. However, after Britain leaves the European Union, British companies also need to comply.
Small and medium-sized enterprises exporting to EU customers will face the greatest turmoil, as these changes eliminate the tax exemption for small and medium-sized enterprises and transportation of no more than 22 euros.