Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps the Government is taking to assist micro businesses and sole traders to comply with the EU VAT supply rules.

HMRC have been and will continue to engage with and provide support to UK businesses, particularly small and micro businesses. They have provided guidance, including via channels such as Twitter, to ensure businesses understand all their options and specific guidance on some key issues raised by smaller UK businesses.

This includes advice on how small businesses can register for VAT in the UK to be eligible for MOSS and still benefit from the UK’s VAT registration threshold for sales to UK consumers.

The change to the place of supply rules is important to the UK. It removes a distortion of competition which unfairly favours businesses that locate to a Member State with a lower rate of VAT than the UK. It therefore creates a level playing field for all UK businesses and helps protect UK revenue. We are keen to do everything we possibly can to support the smallest businesses.