Commentary

V16.881 Electronically supplied services: supplementary information on the Special Scheme for non-EU businesses

Part V16 Forms and other HMRC material

V16.881 Electronically supplied services: supplementary information on the Special Scheme for non-EU businesses

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.  

    —     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”.

1 Introduction

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—

  1.  

    —     VAT registration thresholds;

  2.  

    —     penalties;

  3.  

    —     use of agents;

  4.  

    —     currency conversion;

  5.  

    —     declaration and payment errors;

  6.  

    —     audits; and

  7.  

    —     appeals.

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.

1.2 Law

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

2.1 General

If you apply for the Special Scheme, you are required to comply

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