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The smallest businesses have accidentally been caught in the new EU VAT net. (Photo: Mathias Liebing)

EU's new VAT rules forcing thousands out of business

Six months into the new EU Digital VAT rules, thousands of microbusinesses have closed, geo-blocking is rampant, and the legislation threatens to seriously harm the Digital Single Market.

Originally, it made sense to move the place of supply for VAT on digitally-delivered services to the customer’s location. It stopped the biggest businesses profiting unfairly from locating in lower-VAT regimes.

But the European Commission and a huge number of MEPs now agree that the smallest bus...

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The views expressed in this opinion piece are the author’s, not those of EUobserver

Author Bio

Lisbeth founded EUobserver in 2000 and is responsible to the Board for effective strategic leadership, planning and performance. After graduating from the Danish School of Media and Journalism, she worked as a journalist, analyst, and editor for Danish media.

The smallest businesses have accidentally been caught in the new EU VAT net. (Photo: Mathias Liebing)

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Author Bio

Lisbeth founded EUobserver in 2000 and is responsible to the Board for effective strategic leadership, planning and performance. After graduating from the Danish School of Media and Journalism, she worked as a journalist, analyst, and editor for Danish media.

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