At the start of this year, a new VAT requirement was introduced for businesses – to submit Intrastat returns for sales of services within the EU. This has not been necessary previously and it is unclear why it is suddenly necessary now, but it does generate a lot of extra paperwork. This is especially the case since there is no threshold below which this does not apply.
I suggest this requirement be reversed, or at least a minimum threshold be made to apply
Why is this idea important?
If, for instance, a computer software company which normally sells within the UK makes a sale to France or Germany, they now have lots of extra paperwork to fill in, even if the value of this sale is only £10. (Because software licences are classed as services). This is a disincentive to export and an unnecessary extra burden on British businesses.
In fact, it is easier to sell to India or the USA than it is to sell within the EU because of these rules.