First, this change in the law slipped through Parliament without any effective scrutiny, or warning, in December as part of the Internal Markets Bill, on which the attention was elsewhere, for good reason.
Second, the complaint made by overseas traders is entirely fair. The requirement that they be registered for UK VAT to make a single sale to the UK is absurd, not least when the UK’s VAT registration limit is £85,000. Not only does this smack of an unlevel playing field, it is administratively absurd. A business could, if this arrangement was replicated around the world, be registered in well over 150 countries and have to do VAT returns for each once a quarter. That is clearly impossible. It is the UK’s job to collect its tax owing, and not that of those who might wish to sell to us. It is entirely reasonable that companies are now refusing to sell to the UK.
Back that year or three the P³ was telling us that it was disgusting that folks selling on Amazon didn’t have to register for VAT. This was an outrage that must be stopped. Something Must Be Done!
Now that something has been done, as demanded, he’s agin’ it.