New EU VAT regulations threaten small businesses #VATMOSS

Changes to EU VAT place of supply of services rules threaten constitute a threat to small businesses which provide digital services. 

From January 1 2015, The place of taxation will be determined by the location of the consumer, not the location of the supplier. 

This essentially means that businesses will need to pay VAT to each country where sales originate. 

In this post, I’ll attempt to explain the new rules and how they may affect SMEs.