EU's new VAT rules forcing thousands out of business

Six months into the new EU Digital VAT rules, thousands of microbusinesses have closed, geo-blocking is rampant, and the legislation threatens to seriously harm the Digital Single Market.

Originally, it made sense to move the place of supply for VAT on digitally-delivered services to the customer’s location. It stopped the biggest businesses profiting unfairly from locating in lower-VAT regimes.

But the European Commission and a huge number of MEPs now agree that the smallest bus...