Some comments on the new VAT regulations coming into effect on 1st January. Luca has referred to directive 2002/38/EC but the important one is directive 2008/8/EC which refers to place of supply for digital services. Up to 1st Jan 2015 there has been disparity between B2B and B2C regulations regarding place of supply. For B2B it has always been where the goods are delivered or where the service takes place. For B2C it has been where the goods were despatched from or the home of the person carrying out the service. This now changes with B2C falling into line with B2B. Having spent some time (and reading carefully the wording from HMRC) the following seems to apply (would like independent verification). If you are registered for VAT already you should be recording EU sales on an EC Sales List form. You should register for VAT in each EU state if you have passed the VAT threshold in that state. To make things easy you CAN sign up to the MOSS system. If you have not registered for VAT because you have not passed the threshold in the UK, you need to look at sales in other EU states. If you have passed the threshold then you need to register in that state for VAT. Or you can register in the UK and sign on for MOSS. If your sales are so small that you pass non of the thresholds then it is my belief that you do not have to register for VAT in the UK nor have to sign on to MOSS. It must be noted that HMRC have worded MOSS to say You can sign on. Therefore must be read as not compulsory. If you are based outside the EU then the rules above must seen to be applied. I have attached the list of thresholds in the EU as at March 2014.
Posted on: Tue, 02 Dec 2014 14:11:57 +0000
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