Changes to European Union VAT – What you need to know

Changes to European Union...

Changes to European Union VAT – What you need to know
9 February 2015

Changes to European Union VAT – What you need to know

European Union VAT to change the way you deal with overseas customers online


VAT is already a tricky subject for some people, however with new changes regarding business to customer suppliers of the digital market, it is about to get a little trickier.

We find that anything can be easy as long as you have the right information, and as most of our customers are digital sellers, we thought we would help!


What are the changes to European Union VAT?

Basically, if you sell web hosting, domain names, web services, e-books or other digital services in the EU, instead of charging them VAT prices for the UK, you have to charge them VAT prices for THEIR country.


How does this affect my VAT returns?

You have two options;

  1. You can register for VAT in each country that you supply to and file a separate VAT return for each
  2. You can register for the UK’s MOSS (Mini One Stop Shop) which allows you to submit one VAT return for all the countries you sell to together, and MOSS will distribute the funds for you to each country.


When do the changes happen?

All changes come into effect 1st January 2015. If you use HostPay to manage your customers, you will be unable to directly sell to customers in the EU from the 1st January 2015 as there is currently no solution compatible with HostPay.


Where can I read more in depth information regarding this?

As always, the HMRC website has all the information you will need to ensure that you comply with the changes.