Common reasons to (wrongly) ignore EU VAT law
Sticking your hands over your eyes and going la la la won't cut it.
Reason #1 – Brexit protects me! The UK won't be part of the EU from 1st January 2021, so no problem
Wrong. If you want to sell in the EU and avoid breaking the law, then you can't ignore it.
Reason #2 – I only make a few sales a year, it's not big numbers
Unfortunately, there's no minimum threshold. If I sold one digital copy of my book ‘I Hate Numbers' to a German consumer, EU VAT law applies.
Reason #3 – I can ignore it, no big deal
That's your choice, but it's the naughty step + if you get caught. Punishment can include:
- Penalties and fines
- Your seller account being shut down
- Investigation by the tax authorities – you're outnumbered BTW
Reason #4 – I'm already in MOSS
Good news until 31st December 2020. However, from 1st January 2021 the UK MOSS system won’t apply