New VAT supply rules of digital services to EU consumers

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From the 1st of January 2015 there is a new place of supply rules for value added tax (VAT) on the supply of digital services (broadcasting, telecommunications and e-services) by businesses to consumers in the EU.
From the 1st of January 2015 there is a new place of supply rules for value added tax (VAT) on the supply of digital services (broadcasting, telecommunications and e-services) by businesses to consumers in the EU. From this date, VAT on digital services will be paid in the consumer’s country, not the supplier’s country. It will be charged at the rate that applies in the consumer’s country.

A new online service, the VAT MOSS (VAT Mini One Stop Shop) is also being introduced so that suppliers of digital services don’t have to register in every EU member state where they have customers. Businesses in Europe will be able to register for using VAT MOSS from the 20thof October and the online service will be available for use from the start of next year.

Registration for VAT MOSS must be carried out by the business. Once this has taken place, a business within the EU can authorise an agent to act on its behalf.
The HMRC’s VAT MOSS service will allow EU companies to carry out many tasks on behalf of clients. They will also benefit from the service in a number of additional ways. For example by requesting changes to clients’ registration details, companies can complete returns at the pace of the individual business, saving partially finished returns for submission later, and also getting immediate confirmation that HMRC has received any outstanding clients return.