It’s been almost four months since the new VAT rules for electronically supplied B2C services were introduced, discussed in our article, EU digital VAT rules: essential guide to compliance and MOSS (16 December 2014). The first VAT returns which will include these supplies are now being submitted. So it’s a good time to ask how the changes have been received, and what the prospects are for future reform.

Under-estimated impact

Undoubtedly the biggest resistance to the new rules has come from small, non-VAT registered UK businesses who have found themselves unwittingly caught up with a need to start accounting for VAT.