Update on the new VAT laws

If there was ever any doubt that the country is run by idiots ( was there ever any doubt? ) the changes to the VAT laws solidly removed that doubt.

One of my readers emailed me late last night (Thanks Nigel) to let me know about an update to the law changes. Following a huge amount of lobbying by small business owners the threshold appears to have been put back in place. Any small business that falls below the threshold will not have to charge VAT to customers within the UK. That is a start but as you need to prove that you have only sold to UK residents you still need to register for VAT and keep all the records that were necessary with the original law changes!

I have been doing some reading this morning and found an informative post on the subject. FIND IT HERE 

Lots of info on there and in particular a comment from one of her readers that may help my situation. I did a lot of reading once I knew about the law changes and as I interpreted it my products were affected. However the way I deliver my products may NOT be affected. Lots of grey areas but hopefully I can get some sort of clarification.


As things stand my Clickbank pages are set up ready to go. Are YOU ready for Jan 1st?



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6 thoughts on “Update on the new VAT laws”

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    From the sound of it the only way to be safe from paying VAT is to buy before you change to clickbank. Can you tell me the last date I can buy your annual subscription before any VAT my or may not apply?

  2. blank

    Hi Dave,
    The issue (for me at least) is not to do with charging vat. It is that the workload to gather and keep the records required is totally unrealistic for small businesses, ie those with 1 person carrying out all tasks.
    Before telling me I should welcome it have a proper look at what it involves in real terms and you will see that the laws are actually prompting a lot of micro businesses to shut up shop. Should we welcome that too?

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    Considering you seem to assume this has been implemented by the UK government I would suggest you have a proper look as it’s a new EU regulation that we have to abide by as part of the EU. This has much bigger implications than your few quid in sales and is to stop companies like Google, ebay amazon etc funneling their sales via low VAT charging countries to screw us out of tax and should be welcomed.

    The current thresholds of £81K is still in place so I’m not sure why you think registering for a VAT MOSS is such a hard thing to do. I’ve no idea what your turnover is but anyone hitting those sales shouldn’t have a problem with the few records to keep. FWIW I run my own small business so know what’s involved with the record keeping side of dealing with HMRC

    If a company shuts up shop because registering with MOSS and paying their taxes is such a hard thing maybe we should welcome them shutting up shop.

    1. blank

      You’re assuming what I am assuming. The threshold is in place now but wasn’t in the original changes. Whatever situation you are in and whatever turnover you have I am glad you don’t see an issue. Everyones situation is different.

  4. blank

    Thanks for referencing my blog post 🙂 Unfortunately it’s more than just a bit of extra paperwork. You need to get information which is currently not possible to obtain for most smaller businesses, register with the equivalent of the ICO in each country, keep the information on EU servers (and the back ups of the data on EU servers) and amend your return (both UK VAT return, as you’ll still need to do them, just nil returns) and MOSS returns) every time you have a refund. Updates are on my blog and particularly my mailing list as I’m one of the group who are driving the action around this.

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