VAT: Supplies of digital services to consumers in the EU

Newsletter issue - January 2019.

The VAT rules for businesses suppling digital services to private consumers in other member states change with effect from 1 January 2019.

From that date, the place of supply will be the UK where both:

  • a UK business is not established in any other EU member state; and
  • the total value of cross-border digital sales is less than £8,818 in the current and preceding calendar years.

Businesses affected will no longer need to register for VAT in other EU countries where they have consumers or use the VAT Mini One Stop Shop Scheme (VAT MOSS).

Where the business turnover is below the UK VAT threshold (currently £85,0000) it will also be possible to de-register from VAT.

Businesses based outside of the EU but registered for VAT could not previously use the non-union VAT MOSS. This restriction is now being lifted.

Those businesses registering for the scheme will send HMRC a VAT MOSS return of qualifying sales and payment each calendar quarter. HMRC will send the relevant parts of the return and payment to the tax authority of the country where the consumers are based. The business may however, still need to send a separate VAT return it has non-qualifying sales.

If you have a question
and you'd like a callback from one of our
specialists, simply access and fill in our callback
form and we'll get back to you.Request Callback

What we say is what you pay.
We understand that your finances are important.
Get the best advice for you and your business at a
fixed price for agreed services.Get a Fixed Quote

We believe you should be in charge
of your money, and here at Accapita
we'll show you how to reduce your tax
liablities and make more profit.Find out how to Make more, Keep more and Work less

Choose the icon that best describes your situation and see how our tailored advice can help you.

  • Start Up

    Start Up

  • Established Business

    Established Business

  • Specialist Areas

    Specialist Areas