By Jonathan London on 14th September 2015

New VAT MOSS exemption plan ‘will benefit microbusinesses’

Self-employed people and microbusiness owners are to benefit from planned changes to the controversial European VAT Mini One Stop Shop (VAT MOSS) regulations.

The European Commission has confirmed that it will be proposing an exemption to the rule for small companies and sole traders selling across EU borders, following a considerable backlash among smaller firms to the introduction of the laws in January 1st 2015.

Intended to prevent large companies from reducing their VAT bills by registering digital sales in other countries such as Luxembourg, the regulations have nevertheless been criticised for creating substantial amounts of red tape for small firms, leading many to halt digital sales of their products and services overseas in order to avoid falling foul of the laws.

Currently, UK enterprises do not have to register for VAT until they have £82,000 in revenues, whereas many EU countries have a lower figure or no threshold at all. The aim of the laws was to prevent big companies from using this discrepancy to minimise the amount they pay in tax, but the scope of VAT MOSS has been condemned as being too broad.

Responding to the announcement, the Association of Independent Professionals and the Self Employed (IPSE) has expressed satisfaction at the decision to introduce an exemption for smaller businesses with a modest turnover, many of which are sole traders.

The organisation has been calling for such a move for some time, saying the current regulations have been “making life far more difficult for our smallest businesses”, while discouraging many growing companies from selling their services online.

However, it was also noted that the threshold exemption could take years to come into effect, due to the need to ratify the changes with all EU member states.

IPSE’s chief executive Chris Bryce said: “Sadly, it could be a long time before improvements to VATMOSS pass through the European Parliament. The Commission should now consider what interim measures can be taken to reduce the burden on businesses that in all likelihood will be exempted in future.”

Jonathan London Written by Jonathan London

Was this article helpful?


Although we attempt to ensure that the Information contained in this publication is accurate and up-to-date at the date of publication it may not be comprehensive, we accept no liability for the results of any action taken on the basis of the information they contain and any implied warranties, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement and accuracy are excluded to the extent that they may be excluded as a matter of law.

Share this blog

Download our
FREE guide

Our guide to Choosing the right accountant will help you understand the types of accountancy services available and what might be right for you

Please enter a First Name

Please enter a Last Name

Please enter a valid Email Address

Please enter a valid Mobile/Phone Number

Data protection: We take data very seriously and will not share your details with anyone else. If you wish to receive marketing communications from Boox please tick this box.

You can change your preferences at any stage by clicking on the 'Manage my preferences' link at the bottom of our emails. By continuing, you agree to our Privacy Policy.

How would you like to receive communications?


Select Yes or No


Select Yes or No


Select Yes or No


Select Yes or No
Please Verify Captcha

View our latest blogs

Take a look at our recent blogs below.

We’re here to help

Discuss your business and accountancy
needs in detail with our friendly team with
absolutely no obligation.

Call our friendly team on 0808 168 0422 or

Request a call back

(Open 8.30am to 5.30pm Monday to Friday)

Emily Ewin New Client Manager
Emily Ewin New Client Manager