12th January 2015
HMRC have issued some additional guidance for small businesses which supply digital services to consumers in other EU Member States.
The guidance advises:
On 1 January 2015, the VAT rules for cross-border Business to Consumer supplies of ‘digital services’ (for example broadcasting, telecoms and e-services) changed. Broadly from that date, VAT must be accounted for in the Member State where the consumer normally is, rather than where the supplier of the service is established.
HMRC have also issued more general guidance on the change to all businesses which can be found here
If you would like further information on this issue please contact us.