VAT victory for Cameron
The European Commission is to revise the VAT regime for tech start-ups after David Cameron warned it was punishing British entrepreneurs. The PM had lobbied EC president Jean-Claude Juncker over the new tax regime, which forces companies selling goods online to pay VAT in every country they trade in, rather than where the company is headquartered. The new system also eliminated the £81,000 threshold for which companies have to register for the duty. Brussels said its consultation will include restoring a VAT threshold to help start-ups, extending a single registration scheme for cross-border taxes, and allowing businesses to be audited for VAT only by their home countries say Harris & Co chartered accountants Northampton, the specialist small business accountants.