Up to now, the threshold before you had to register for VAT in the target market was a relatively generous 35k to 100k Euros per territory. But from 1st July that has been abolished and replaced with a flat 10,000 Euros across the whole of the EU region meaning SME’s with even modest EU sales now face the potential extra burden of tax management on what might amount to modest sales with a miniscule profit. There is some light at the end of the tunnel however in the form of the “One Stop Shop” or OSS for short which has the potential to allow SME’s to avoid the cost and headache of multiple VAT registrations and reporting obligations. Even so it’s a complicated and burdensome system, with a number of bear- traps that might see the unwary unable to reclaim VAT on EU purchases or even double taxation. The best advice is to talk to your accountant and plan your strategy carefully. The greatest impact is likely to be on fast growing start-ups just getting a foothold in exporting to the EU who are now facing an increased administrative burden just when they need things to be as smooth as possible.