New EU tax law puts thousands out of business
We’re here to help you! A major revision to the VAT tax in the European Union tax has caused the shutdown of thousands of businesses because they cannot afford to meet the complex rules and bureaucracy required.
Designed to prevent large businesses locating themselves in VAT-competitive territories, it had the predictable effect of drowning small businesses under a sea of bureaucracy, forcing them to access the data required to prove the customer’s location, figure out which of more than 80 VAT rates to apply, and issue an invoice in the correct language, currency and layout. Unable to afford the costly software required to deal with the regulation, thousands of small business and sole traders have closed or abandoned their enterprises. Most of those who have continued to trade have either moved to third party platforms, losing up to 70 percent of their total revenue (not just non-domestic sales) in commission, or spent thousands on software.
“The human cost to these businesses is vast”, Clare Josa is co-founder of EU VAT Action commented for EU Observer. “The only reason the Digital Single Market is still functioning is because awareness levels are below 5 percent, so most businesses are continuing to trade under the former system. As awareness rises, the damage will soar.”
Read the whole article. The quote above only gives a small taste of the problem caused entirely by government bureaucrats and elected officials who seem divorced from reality. And though this is a European governmental disaster, it is instructive for Americans to learn about it. Like Obamacare, the new VAT tax rules were imposed with the best of intentions, but completely ignored the reality of meeting those intentions. The result is financial ruin for thousands of businesses and individuals.
Readers!
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In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
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We’re here to help you! A major revision to the VAT tax in the European Union tax has caused the shutdown of thousands of businesses because they cannot afford to meet the complex rules and bureaucracy required.
Designed to prevent large businesses locating themselves in VAT-competitive territories, it had the predictable effect of drowning small businesses under a sea of bureaucracy, forcing them to access the data required to prove the customer’s location, figure out which of more than 80 VAT rates to apply, and issue an invoice in the correct language, currency and layout. Unable to afford the costly software required to deal with the regulation, thousands of small business and sole traders have closed or abandoned their enterprises. Most of those who have continued to trade have either moved to third party platforms, losing up to 70 percent of their total revenue (not just non-domestic sales) in commission, or spent thousands on software.
“The human cost to these businesses is vast”, Clare Josa is co-founder of EU VAT Action commented for EU Observer. “The only reason the Digital Single Market is still functioning is because awareness levels are below 5 percent, so most businesses are continuing to trade under the former system. As awareness rises, the damage will soar.”
Read the whole article. The quote above only gives a small taste of the problem caused entirely by government bureaucrats and elected officials who seem divorced from reality. And though this is a European governmental disaster, it is instructive for Americans to learn about it. Like Obamacare, the new VAT tax rules were imposed with the best of intentions, but completely ignored the reality of meeting those intentions. The result is financial ruin for thousands of businesses and individuals.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
I do not agree that Obamacare was imposed with the best of intentions. It was designed to create chaos and frustration so that the bureaucrats could later ‘fix’ it with a single payer system.
Ted – same here.
“government bureaucrats and elected officials who seem divorced from reality”
Sorry. Not divorced – they just have their own sense of desired reality. EU socialists (as their Communist cousins) always have big problems with “small businesses”. To difficult to control and supervise. They would just as well like the neighborhood butcher shop (or anything else) to be gov’t run and staffed with gov’t employees.
If it doesn’t work – so what! If people complain – ha ha ha – oh boy! Waiting for Madera to solve his country’s problems with mass arrests and disappearances.