V16.108 VAT Notes No 3 2014

V16.108 VAT Notes No 3 2014

VAT place of supply of service rule changes and introduction of the VAT Mini One Stop Shop

In VAT Notes 2 of 2014, HM Revenue & Customs (HMRC) reminded you of the changes being made to the VAT place of supply of services rules from 1 January 2015. The changes affect businesses that supply digital services (broadcasting, telecommunications and e-services) to consumers (private individuals). From the 1 January 2015, the place of taxation of these supplies will be determined by the location of the consumer who receives the service, rather than the location of the supplier of the service.

To save digital service suppliers having to register for VAT in every European Union (EU) member state where they have consumers, they can opt to use the VAT Mini One Stop Shop online service (VAT MOSS). By using VAT MOSS a business can register and account for the VAT on all its EU business to consumer digital service supplies to just one EU member state tax authority – for example HMRC. Businesses can register to use VAT MOSS from 20 October 2014.

To find out more about the changes and

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