Commentary

RCB/46/14 VAT rule change and the VAT Mini One Stop Shop – additional guidance

Part V16 Forms and other HMRC material

RCB/46/14 VAT rule change and the VAT Mini One Stop Shop – additional guidance

RCB/46/14 VAT rule change and the VAT Mini One Stop Shop – additional guidance

Revenue & Customs Brief, Issue 46 10 December 2014

Purpose of this brief

This brief provides additional guidance to UK micro and small businesses who supply digital services to non-business customers in other EU member states about—

  1.  

    —     how to comply with the new VAT rules for digital services that come into force on 1 January 2015

  2.  

    —     how to register for HM Revenue and Customs (HMRC) VAT Mini One Stop Shop (MOSS) and still benefit from the UK's VAT registration threshold for sales to UK customers.

Who needs to read this?

UK businesses that make cross-border Business to Consumer (B2C) supplies of digital services to customers in other EU member states, particularly micro and small businesses.

If you are a UK business and—

  1.  

    —     are unsure whether the services you supply are “digital services” covered by the new rules please read section 2

  2.  

    —     are currently below the UK VAT registration threshold and want to register for MOSS to account fro the VAT on your cross-border supplies please read section 3

  3.  

    —     you want to understand the timescales that apply for registering for MOSS, please read section 4

  4.  

    —     you want to understand what records you need to keep, please read section 5.

Section 1: background

What is happening?

On 1 January 2015 the VAT rules for cross-border B2C supplies of “digital services” (ie broadcasting, telecoms and e-services) will change. From that date, VAT must be accounted for in the member state where

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