Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Nia Griffith Excerpts
Tuesday 10th March 2015

(9 years, 2 months ago)

Commons Chamber
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Nia Griffith Portrait Nia Griffith (Llanelli) (Lab)
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We all want to see an end to big companies wriggling out of tax by offshoring profits, but what assessment has the Minister made of the impact on kitchen table digital industries, such as the sale of knitting patterns, of the way in which HMRC has implemented the new EU rules on VAT being collected in the country of sale, and what can he do about it?

David Gauke Portrait Mr Gauke
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Those are EU rules. It was the previous Government who signed up to the principle of changing the way in which the VAT system worked, and they were right to do so. This Government have taken two measures to try to mitigate the impact on some smaller businesses. None the less, without the support of other member states, we are still faced with a change in the rules.