On the 1st Jan 2016 the French reduced their EU VAT Threshold down to €35,000 from €100,000, which the UK, Germany and the Netherlands still have.
This means that any EU based business outside France with sales to France of more than €35,000 must pay VAT directly to the French Authorities rather than to their home country.
The consequence of this is that a French business with annual sales to the UK of €99,000 euros pays VAT to the French, yet a UK business with €99,000 of sales to France also pays VAT to the French.
I wonder how this is fair and reasonable and why did the UK Government agree with it and not least require that our threshold was also lowered?
The French Authorities are targeting UK Internet sellers and are requiring under EU rules that HMRC investigate on their behalf.
An HMRC VAT Inspector at Elizabeth House in Northampton told me that in the whole of her career she had never had a referral like this before, but in the last few weeks she had received four cases. Isn’t it quite obvious that the French are off on a cash collection exercise at OUR expense?
I absolutely despair at the way in which these Brexit negotiations appear to be going. I am sick and tired of hearing the phrases “Hard Brexit” and “Soft Brexit”. I am not usually a fan of Jacob Rees Mogg but having watched him on question time, his calm reasoned explanations completely out foxed the Remainers on the panel. His simple statement “out means out” is precisely what the “Leavers” voted for. We should not be going into these negotiations with the begging bowl neither do we need to be overly arrogant which is how the Remainers in both politics and the media would portray us. With regard to your post regarding VAT a situation that I was unaware of, it is a demonstration of exactly the way France in particular, the country that never wanted us in the EU, sees the UK. Purely as a money pot and the consequences of our departure meaning France will probably have to pay in more money, they want to get as much from us as possible before the money pot disappears. Politicians being the devious people they are always make things as complicated as possible in order to ensure their actions with regard to all things are so difficult to ascertain they hope they will never be found out. Hence politicians do not do simple and straightforward. The opening debates on Brexit being a prime example with regard to the future of EU citizens’ rights after Brexit. The conditions appear to be so wide and varied virtually no criteria seems the same or appropriate for more than a small number of individuals. It is mind boggling trying to understand them. What has not been mentioned is the fact that all the estimated 3million plus EU citizens here all live or work in the UK whereas the estimated 1 million UK nationals are dispersed amongst a number of different countries in the EU. The saga will no doubt continue…