EU VAT rules are changing. Are you ready?

From 1 January 2015, the way VAT is charged on e-services, broadcasting and telecommunications services to individual consumers will change. If you supply these services to consumers in the EU, are you ready?

What is changing?

Currently, the place of taxation is determined by your location (you being the supplier). If you own a business based in the UK and you sell a product to a customer in Croatia, you must charge the UK rate of VAT.

From 1 January 2015, however, the place of taxation will be determined by the location of your customer. So, if you sell a product to a customer in Croatia after this date, you must charge the Croatian rate of VAT.

The VAT Mini One Stop Shop (MOSS)

The VAT MOSS aims to make it simpler for businesses to comply with the new rules. Instead of having to register for VAT in each EU country to which you supply services, you can submit a single quarterly online VAT return and payment to HMRC using the VAT MOSS. HMRC will then send the information and payment to the relevant tax authority or authorities.

Contact us for help registering for the VAT MOSS.

Talk to the experts

We can advise you on the upcoming VAT changes and help you prepare your accounting practices to cope with the new rules.

Contact us today on 01753 892 815 or email info@hmiller.co.uk to discuss your business.