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<p>Businesses that supply digital services to consumers in other Member States are
covered by the new VAT rules. However, there are a number of supporting measures to
mitigate the impact on small businesses.</p><p> </p><p> </p><p> </p><p>HMRC will allow
businesses below the VAT registration threshold to register for VAT in respect of
their cross border sales only. This means these businesses can use the on-line Mini
One Stop Shop, which removes the burden of registering for VAT in other Member States,
whilst also retaining the benefit of the national VAT threshold for their domestic
sales. Small businesses that sell through a digital platform will not have to register
for VAT because the operator of the marketplace has the responsibility to account
for the VAT.</p><p> </p><p> </p><p> </p><p>HMRC has also provided extensive guidance
to support businesses, including organising a Twitter Clinic and publishing answers
to the main questions and is engaging with Enterprise Nation about the concerns of
micro businesses.</p><p> </p><p> </p><p> </p><p> </p><p> </p><p>A Tax Information
and Impact Note was published on 10 December 2013 which included an assessment of
the impact on small and micro businesses. It is available at <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/264647/Overview_of_legislation_in_draft.pdf"
target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/264647/Overview_of_legislation_in_draft.pdf</a></p><p>
</p><p> </p><p> </p><p> </p><p> </p><p> </p><p>Introducing a cross-border threshold
for digital sales is not permitted under European Law. This would require a change
in EU law agreed by all Member States.</p><p> </p>
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