If your business supplies broadcasting, telecommunications or electronically supplied services to private consumers read on.
On 1 January 2015, major changes which radically alter the VAT position and compliance requirements for these supplies will come into effect.
From that date, if you make supplies of these services to EU customers who do not provide you with a valid VAT registration number, you will have to charge VAT at the rate due in the customer’s country and declare it to the VAT authorities there.
To do this, you will either need to obtain a VAT registration in the customer’s country or, opt to use the VAT “Mini One Stop Shop” (MOSS) online service.
If you apply to use VAT MOSS (which you would normally do in the country where your business is established), you will be able to submit a single return covering supplies of relevant services made to private consumers across the EU. The return will show the VAT due (at the local rate) in each EU country where you have made relevant sales.
Any business which is affected by this change should be taking action now to ensure that their invoicing procedures, accounting systems, pricing policies, marketing materials, website etc have been updated to cope with this change.
If you are in any doubt about how this change affects you, please give us a call for an informal chat.