Question

To ask the Prime Minister, if, during the discussions of the effect on UK micro-businesses of EU digital VAT legislation since its implementation on 1 January 2015 at the March 2015 European Council meeting in Brussels, he will negotiate for a derogation for micro-businesses; if he will publish details of changes that he plans to call for in those discussions; if he will report to the House before the Dissolution of Parliament on the outcome of those discussions; and if he will make a statement.

I updated the House on the March 2015 European Council meeting on 23 March 2015, Official Report, columns 1120-1122.

While the UK supports Directive 2008/8/EC on EU VAT for digital services sold across borders, this Government is making sure that microbusinesses are not disadvantaged. I raised the challenges created by the new directive for UK microbusinesses with the President of the European Commission in Brussels last week. The Commission is looking into this and will publish a report reviewing implementation of the Directive. We will continue to push this to make sure that we get the best deal for British firms.