UK Parliament flags ViDA and Customs IOSS reforms as potential friction for UK businesses trading in the EU

30 November 2023

The UK Parliament’s European Scrutiny Committee has published concerns around the EU’s VAT in the Digital Age (ViDA) 2025 proposals to make the Import One Stop Shop mandatory and to remove the low value threshold of €150.

The committee highlighted that making the IOSS mandatory with no low value threshold would force UK businesses into using the reporting mechanism. This would mean UK businesses would have to charge and collect VAT when selling to EU customers, as well as engage a fiscal representative (intermediary) in the EU to report and remit this VAT on their behalf. This would create a significant administrative burden for effected companies and would have a financial impact too.

These concerns are raised even though the UK has no VAT registration threshold for non-resident businesses, and expects all non-resident suppliers importing and selling low value goods to consumers in the country to VAT register. 

Are you trading globally? Whether you require basic VAT advice or specific VAT compliance support, Fiscal Solutions can help. Our team of multi-lingual experts are knowledgeable in all the different VAT rules in Europe and around the world.

We help you simplify today’s complexities and address tomorrow’s challenges. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.

Get in touch

Let us solve your current business VAT challenges

CONTACT US
LATEST NEWS

UPDATE: Philippines proposes to apply VAT on e-services

During May 2024, the Philippines Senate voted in favour in a second reading of Bill No. 2528 imposing VAT on foreign providers of digital services to...

SEE MORE
VAT news
LATEST NEWS

EU yet to reach an agreement on VAT in the digital age...

During May 2024, the Economic and Financial Affairs Council (ECOFIN) failed to reach agreement on the EU Commission’s proposed changes to VAT rules included...

SEE MORE
VAT news
LATEST NEWS

Cyprus extends VAT rate cuts on essential goods

The Cypriot government has further extended the temporary reduction on the 5% and 19% VAT rates applied to certain essential goods until 30 June 2024. The VAT...

SEE MORE
VAT news

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.