Our Blog page banner

VAT changes on supply of digital services

VAT changes on supply of digital services

From 1 January 2015, new legislation comes into force that affects the sale of digital services to customers in other EU countries.  Digital services include broadcasting, telecommunications and electronic services, also known as e-services.

The new VAT rules

The new VAT rules came into effect from 1 January 2015.

Under the new rules, when you sell digital services to consumers in other EU countries, the VAT is charged in the country where the customer is based.

The VAT Mini One Stop

Your business must either register for VAT and submit VAT Returns in each EU country you sell to, or alternatively, register for the VAT Mini One Shop (MOSS) scheme provided by HMRC and Revenue.

You have to register for this scheme and submit one VAT MOSS Return each quarter, instead of registering for VAT and submitting VAT Returns in each EU country you sell to.

Out of the scope of MOSS

The following are not covered by the new rules relating to MOSS

·         Sales to other businesses (B2B) in the EU.

·         Sales to customers located outside the EU.

Contact us on 01628 631056, fill out our contact form or email tracya@knightandcompany.co.uk  to find out about our company secretarial service.