VAT treatment of electronically supplied services
Produced in partnership with John Fuszard of Sagars Accountants Ltd

The following Tax practice note produced in partnership with John Fuszard of Sagars Accountants Ltd provides comprehensive and up to date legal information covering:

  • VAT treatment of electronically supplied services
  • What are electronically supplied services?
  • Place of supply of electronically supplied services
  • B2B e-services
  • B2C e-services
  • Special VAT registration scheme for e-services—the VAT MOSS
  • Zero-rating and e-publications
  • Historic treatment
  • News Corp litigation

VAT treatment of electronically supplied services

IP COMPLETION DAY: The Brexit transition period ended at 11pm on 31 December 2020. At this time (referred to in UK law as ‘IP completion day’), transitional arrangements ended and significant changes began to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for Tax?

There are special rules for determining the place of supply of electronically supplied services (e-services, or digital services), depending on whether the customer is a private consumer or a business.

These special rules have the effect that businesses supplying e-services above a minimum value to private customers in the EU are liable to VAT in each customer's home country. To relieve businesses from having to register for VAT in each of those countries, there is a special registration scheme, known as the VAT mini one stop shop (VAT MOSS), under which businesses can instead opt to register and account for VAT on e-services in a single EU country. There are two, very similar, versions of the VAT MOSS depending on whether the supplier is inside or outside the EU. These are known as the Union scheme and the non-Union scheme.

This Practice Note covers:

  1. the meaning of electronically supplied services

  2. the place of supply rules for

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