Main photo

Home icon For all your accountancy needs call us Truro. 01872 272047 | Falmouth. 01326 375587

What our clients say...

The support Lang Bennetts have given us over the last 13 years has helped our business in a number of ways.

"They have also helped with new acquisitions that has allowed us to grow and expand our branch network across Cornwall, Devon, Dorset, Bristol, Somerset and Wiltshire."

Mark Mitchell, Cornwall Glass & Glazing

VAT and new rules for digital services

If you supply digital services to consumers in other EU countries, you should be aware that new VAT place of supply rules apply from 1 January 2015.

Digital services means broadcasting, telecommunications and e-services, with e-services especially being a fast changing area. They include everything from downloaded apps, e-books and anti-virus software, to video on demand and music downloads.

HMRC treats business-to-business (B2B) supply of services as the place where your customer is situated, so there are no VAT implications for a UK business selling to other EU countries. These rules are not changing.

From 1 January 2015, the business-to-consumer (B2C) rules mirror the B2B treatment, replacing the old rule, under which B2C supplies were regarded as made where the supplier was situated. VAT is therefore now payable in the country where the customer is situated and at that country’s rate of VAT.

With B2C supplies, the customer is a consumer and is therefore not registered for VAT, so the supplier remains liable for the tax.

Rather than having to register in every member state you supply to, an easier alternative is to use HMRC’s online VAT mini one stop shop. You then just submit a single quarterly return and payment, and HMRC does the rest on your behalf. Let us know if we can help.

In this edition

Advisory fuel rates reflect fall in oil prices
autumn-statement-tax-announcements.cmspage
Autumn15.pdf
Coded out debt
Restrictive covenants on employment contracts
Spring
Summer 2015
The mansion tax debate continues
VAT and new rules for digital services
Winter2015MoneyMatters.pdf

This newsletter is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking any action on the basis of the contents of this publication. The newsletter represents our understanding of law and HM Revenue & Customs practice as at 5 January 2015.