V16.881 Electronically supplied services: supplementary information on the Special Scheme for non-EU businesses
Information Sheet 10/03, August 2003
This Information Sheet explains further details about the special electronic registration and VAT accounting scheme for non-EU businesses which provide electronically supplied services to EU consumers.
It should be read in conjunction with VAT Information Sheet 7/03 “Electronically supplied services: Special Scheme for non-EU businesses”. You will also need to read the following VAT Information Sheets—
— 1/03 “Electronically supplied services and broadcasting services: new EU place of supply rules”;
— 4/03 “Electronically supplied services: a guide to interpretation”; and
— 5/03 “Electronically supplied services: evidence of customer location and status”.
1.1 What is this Information Sheet about?
This Information Sheet provides further information about the new Special Scheme for non-EU businesses supplying electronically supplied services to EU consumers (that is, private individuals and non-business organisations). It includes guidance on—
— VAT registration thresholds;
— use of agents;
— currency conversion;
— declaration and payment errors;
— audits; and
The Special Scheme provides an optional, simplified means of registering and accounting electronically for VAT that is due in the EU with effect from 1 July 2003, following implementation of the VAT on E-Commerce Directive.
VATA 1994 s 3A and Sch 3B provide for the Special Scheme. They implement art 26c of the Sixth Directive, added by art 3 of the VAT on E-Commerce Directive (Co.Dir.2002/38/EC).
2 Registration for the Special Scheme
If you apply for the Special Scheme, you are required to comply