Taking the trouble out of Tax

Advice Line : 0800 170 1133

Supplying Digital Services?

digitalserviceThis affects anyone supplying digital services outside their own EU member state. For example anyone selling access to downloadable programs, digital music, broadcast TV and radio, and subscriptions for digital facilities.

There is an exemption for businesses offering training in digital form, or by remote link.

Here’s what HMRC says about it:

From 1 January 2015, changes will be made to the European Union (EU) VAT place of supply of services rules involving business to consumer (B2C) supplies of digital services (broadcasting, telecommunications and e-services). The place of taxation will be determined by the location of the consumer, and digital supplies will be taxed at the VAT rate applicable in the consumer’s member state.

There’s more information on this change at the GOV.UK website, including how to register for the new system.