Hi
The VAT place of supply rules for electronic sales to non-business customers will be changed in next weeks Budget to incorporate updated EU rules.
Under the new legislation, there will be a £8,818 (€10,000
equivalent) turnover threshold below which the VATMOSS rules do not apply. The purpose is to ease the administrative burden on businesses making sales of digital services and to allow a group of businesses currently excluded from the MOSS scheme to access it.
However, as VATMOSS is only available to EU businesses, the
measure may have a limited shelf-life if the UK leaves the EU without a withdrawal agreement on 29 March 2019. Unless an agreement is reached with the EU, UK businesses supplying e-services to consumers post-Brexit will either have to register and account for VAT wherever they sell in the EU or register for the VAT MOSS ‘non-Union’ scheme in an EU member state.
If you are affected by the VATMOSS rules and need help with these changes please drop me an email and we'll be happy to help.
Noel Guilford