What the companies who *did* know digital EU VAT was coming thought, according to KPMG

This far we’ve been focusing on the dire consequences of the new EU digital VAT legislation for the small scale traders who were never consulted or considered by the EU Commission, HM Treasury, HMRC – and just about everyone else – primarily because they had no idea this particular commercial sector even existed.

Larger companies, especially those who were lucky enough to belong to the voluntary associations and other business bodies that HMRC chose to brief, and also those who can afford to pay the sky-high fees of multinational accountancy firms were informed and indeed consulted.

You can read KPMG’s 2014 report on their readiness survey here.

Let me flag up a few key points for you.

Pricing strategy
Over 75% of businesses surveyed are considering increasing their prices from 2015.

Compliance and costs
31% – nearly one in three businesses with turnover of £50m-£100m do not believe that they will be ready to comply with the changes by 1 January 2015.

Commercial strategy
61% Of businesses with turnover of £50m-£100m are considering reducing the number of EU territories into which they sell affected products.

Education and awareness
62% Of small-sized businesses were not aware that the changes to VAT are happening.

And these are businesses who knew it was coming and could reasonably be expected to have the resources to cope.

How exactly are the smallest scale traders supposed to manage?

I have another question. Who in any kind of relevant government department would have seen this information? If not, why not?

Or do firms like KPMG just post this sort of stuff online, in the manner of someone chucking a message in a bottle out to sea? In hopes that someone somewhere might pick it up…?

Please feel free to use this in letters you are writing.


One thought on “What the companies who *did* know digital EU VAT was coming thought, according to KPMG

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