Commentary

V16.879A Electronically supplied services: Special Scheme for non-EU businesses

Part V16 Forms and other HMRC material

V16.879A Electronically supplied services: Special Scheme for non-EU businesses

V16.879A Electronically supplied services: Special Scheme for non-EU businesses

Information Sheet 7/03, May 2003

This Information Sheet explains the special electronic registration and VAT accounting scheme for non-EU businesses which provide electronically supplied services to EU consumers and how it operates in the UK.

If you supply electronically supplied services you will also need to read the following VAT Information Sheets—

  1.  

    —     1/03 “Electronically supplied services and broadcasting services: New EU place of supply rules”;

  2.  

    —     4/03 “Electronically supplied services: A guide to interpretation”; and

  3.  

    —     5/03 “Electronically supplied services: Evidence of customer location and status”.

A further VAT Information Sheet “Electronically supplied services: Supplementary information on the Special Scheme for non-EU businesses” will be published in July 2003.

1 Introduction

1.1 What is this Information Sheet about?

This Information Sheet explains the new Special Scheme for non-EU businesses which supply electronically supplied services to EU consumers (that is, private individuals and non-business organisations) and how it operates in the UK. The Special Scheme provides an optional, simplified means of registering and accounting electronically for EU VAT with effect from 1 July 2003, following implementation of the VAT on E-Commerce Directive.

1.2 Law

VATA 1994 s 3A and Sch 3B provide for the Special Scheme. They implement art 26c of the EC Sixth Directive, added by art 3 of the VAT on E-Commerce Directive (Co.Dir.2002/38/EC).

1.3 Why is this Scheme being introduced?

This new Scheme is being introduced alongside the changes to the EU place of supply rules for electronically supplied services, which also take effect from 1 July 2003.

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