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The new strategy rightly strives to offer much needed new game-changing solutions on the big emerging issues of this decade, linked to digitalisation and innovative/disruptive business models.
However, ACCA warns that the successful implementation of such an ambitious programme will only be possible if all parties concerned are really committed to make it work: the co-legislators - the EC and the Council- for a balanced design of the forthcoming legislative measures, the Member States for an effective implementation at national and local level, and of course the continuous collaborative support from all stakeholders.
The newly published strategy entails numerous angles of relevance for the global accountancy body. For instance, the IMS’ focus on how to address mobility issues and barriers in business services markets, the enforcement of existing Single Market legislation, and how to help start-ups/SMEs to set-up, grow and have a second chance, is particularly close to ACCA’s heart.
ACCA namely commends the intention of the European Commission to address the main difficulties faced by SMEs and start-ups throughout their lifecycle identified in the IMS. These include identifying and meeting regulatory requirements, access to funding, uncertainties surrounding company law and fear of failure, and complexity of taxation.
In this vein, ACCA looks forward to the announced launch of the 'Start-ups initiative' and the development of the Single Digital Gateway, to help start-ups scale up across Europe.
Chas Roy Chowdhury, head of Taxation at ACCA says: 'ACCA welcomes in principle the proposal on a new VAT action plan for an effi¬cient and fraud-proof definitive VAT system. Reducing complexity of VAT regulations for small companies’ cross-border operations is a laudable aim, and should be pursued.'
'However, it is important to note that if we constantly hear about the ‘think small business first’, it rarely turns out to be the case that small businesses - especially the ones which are micros in a start-up situation - are given adequate consideration. We can for instance see this adverse impact on micro businesses in the new VAT rules affecting the sale of digital products, which came into force at the start of this year. The reality is that these rules have forced some micro businesses to stop trading across borders or be forced to register for VAT,' Chas Roy Chowdhury adds.