4 ms·

In my opinion, the EU has failed (still) to be an open big market, where companies can grow without restrictions. One current big example are the new VAT rules

In my opinion, the EU has failed (still) to be an open big market, where companies can grow without restrictions. One current big example are the new VAT rules in the EU for non-physical products. They just do the opposite, what a free market should be. There are already companies that say on their website, that they will sell to their own countries people and happily even to people outside of the EU, but not to people living in other EU countries. The total opposite what the EU once should be. The new VAT rules also should limit the possibilities of big companies like Amazon to circumvent VAT. In reality it become a big stumble block for smaller companies. The EU is a big market, with many, many rules. To many rules and to few thoughts on the effects particularly for smaller companies. (instead, the big corporations are effectively writing the rules) When smaller companies do not get the chance to come up (what is happening) than the chances for Unicorns are also greatly limited. Instead the same big players are winning again and again and are doing the same dinosaur stuff again and again.

pvaldes 11y ago
VAT has become a big problem for commerce, yes.
- PythonicAlpha 11y ago
  It's not about VAT, but about the new VAT rules in the EU particularly for non-physical goods. The problem is not the VAT amount, but that small companies potentially have to deal with all the finance offices (and special rulings) of all EU countries. That is ridiculous!
  - pvaldes 11y ago
    VAT is a problem for a small company because you have two works and one of them (tax recolector) is unpaid and eat lots of hours that you'll need to blow some life in your startup. If your client is a big company they can blackmail you to have a "VAT discount". If you want to do business with them, you'll need either to eat their VAT with a percentage of your expected benefits, or you are obliged to cheat to survive. You end figthing with your clients for paying the damned VAT. Always. With each one. If you take in mind all the lost work hours, angry clients and nuissances that causes to everybody it is clear that is worthless and hurts the economy, but the problem is that VAT is like cocaine for the government. Is wonderful and they always want more. With VAT you can bill taxes to children and to elders for the privilege of buying something in your city but you are not obliged to provide them with a future pension, or any other service instead. And like any other drug, you raise and raise the doses until finally all collapses. You want to raise VAT and bill 21% for a book or a film? Not problem, people can survive without going to cinema or buying a book. Now you have a 21% of 5 tickets, instead a 4% of 500 tickets and so.
    - PythonicAlpha 11y ago
      I did not want to speak in favor of VAT. I agree, that VAT can be a problem in general for smaller companies. Small companies are often fighting against the wall. And I also don't like VAT. But I wanted to make the point that the new VAT rules in the EU regarding non-physical goods that are sold over the internet (for example downloadable products or also any internet-services) are even more destroying, particularly for very small companies and startups. So, without a good reason, they just destroy those companies, that are the future and whose counterparts in the US are so successful. With such stupid regulations, they just kill innovation! VAT is bad, but the new EU VAT rules are pure insanity. (btw. did you know, that those rules also apply for US companies that want to sell in Europe? -- just with the difference, that US companies have a big enough market themselves -- something that EU companies don't, because the EU is destroying this market with over-regulation and stupidity)

pvaldes 11y ago

VAT has become a big problem for commerce, yes.

PythonicAlpha 11y ago
It's not about VAT, but about the new VAT rules in the EU particularly for non-physical goods. The problem is not the VAT amount, but that small companies potentially have to deal with all the finance offices (and special rulings) of all EU countries. That is ridiculous!
- pvaldes 11y ago
  VAT is a problem for a small company because you have two works and one of them (tax recolector) is unpaid and eat lots of hours that you'll need to blow some life in your startup. If your client is a big company they can blackmail you to have a "VAT discount". If you want to do business with them, you'll need either to eat their VAT with a percentage of your expected benefits, or you are obliged to cheat to survive. You end figthing with your clients for paying the damned VAT. Always. With each one. If you take in mind all the lost work hours, angry clients and nuissances that causes to everybody it is clear that is worthless and hurts the economy, but the problem is that VAT is like cocaine for the government. Is wonderful and they always want more. With VAT you can bill taxes to children and to elders for the privilege of buying something in your city but you are not obliged to provide them with a future pension, or any other service instead. And like any other drug, you raise and raise the doses until finally all collapses. You want to raise VAT and bill 21% for a book or a film? Not problem, people can survive without going to cinema or buying a book. Now you have a 21% of 5 tickets, instead a 4% of 500 tickets and so.
  - PythonicAlpha 11y ago
    I did not want to speak in favor of VAT. I agree, that VAT can be a problem in general for smaller companies. Small companies are often fighting against the wall. And I also don't like VAT. But I wanted to make the point that the new VAT rules in the EU regarding non-physical goods that are sold over the internet (for example downloadable products or also any internet-services) are even more destroying, particularly for very small companies and startups. So, without a good reason, they just destroy those companies, that are the future and whose counterparts in the US are so successful. With such stupid regulations, they just kill innovation! VAT is bad, but the new EU VAT rules are pure insanity. (btw. did you know, that those rules also apply for US companies that want to sell in Europe? -- just with the difference, that US companies have a big enough market themselves -- something that EU companies don't, because the EU is destroying this market with over-regulation and stupidity)