Policy paper

VAT: changes to the supply of digital services 2019

This tax information and impact note is about changes to the VAT rules for businesses making sales of digital services to consumers across the EU.

• From: HM Revenue & Customs
• Published: 11 September 2018
• Last updated: 18 October 2019 — See all updates

Documents

VAT: changes to the supply of digital services 2019

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Details

This measure will make 2 changes to the rules for businesses making sales of digital services to consumers across the EU.

1. Introduce a (sterling equivalent) €10,000 threshold for total supplies to the EU in a year of sales of digital services. This change means that businesses will only be subject to the VAT rules of their home country if their relevant sales across the EU in a year (and the preceding year) falls below this threshold. If the businesses total taxable turnover is below the UK VAT registration threshold they will be able to de-register from VAT. Businesses can continue to apply the current rules if they so choose.

2. Allow non-EU businesses, which are registered for VAT for other purposes, to use the Mini One Stop Shop (MOSS) scheme to account for VAT on sales of digital services to consumers in EU member states. This group are currently excluded from using MOSS – a business facilitation system.

A consultation about the draft legislation for VAT supplies of electronic, telecommunication and broadcasting services orders 2018 is also available.

Published 11 September 2018
Last updated 18 October 2019 + show all updates

1. 18 October 2019

   The contact details have been updated under 'Further advice'.

2. 11 September 2018

   First published.