A genuine case of the EU getting it really wrong, even if it was for the right reasons, is about to come into force on January 1st. From that date companies in the UK what ever their size and turnover will need to register for VAT if selling digital service. This includes apps purchased through a platform such the apple App Store or a simple knitting pattern sold through a blog.
The idea was a good one that has been poorly executed, that companies should pay VAT at the rate of the country in which the good is purchased. Designed to prevent companies like Amazon taking advantage of differing VAT rates, it has caught out micro businesses who sell the occasional download within the EU.
There have been numerous articles in the press including this highly critical one in The Guardian.
This ruling will only effect businesses selling a digital service, e-books, apps, online training videos. It will not effect those selling goods or a “live” service to the EU, who currently trade under the VAT threshold in the UK.
How have Ukip approached this issue, reported it honestly, after all it will effect upwards of 34,000 micro businesses and genuinely shows the EU placing an administrative burden on SMEs. Or do the Ukip thing.
They chose the Ukip thing .. LIE. This is what they have put on their web site
They have blatantly gone for the WOW factor .. “ALL businesses selling ANYTHING”
A quote from Margot includes “herbal supplements” are these a downloadable digital service?
One could be charitable and suggest that Margot just got it wrong and misunderstands but her letter here shows she is well aware that it is digital goods only.
Ukip have lied on their web site, FaceBook and Twitter because their policy has always been one of FEAR. If they lie about a genuine case of EU incompetence how can they be trusted to tell the truth on anything.