Important VAT rule changes for e-services, telecommunications and broadcasting
Ryan Bevan 29 March 2014 No comments
Do you provide e-services, telecommunications or broadcasting services to non-business customers in other EU countries?
If so, are you ready for the new VAT rules which come into effect next year?
Currently a UK supplier of these services charges UK VAT to all EU non-business customers. However this will no longer be the case from 1 January 2015 when these services will be taxed based on where the customer is located. This means French VAT must be charged on sales to non-business customers in France, Italian VAT on sales to non-business customers in Italy, etc.
Businesses affected by these changes need to ensure that their billing systems will be able to cope with charging the VAT of up to 28 different countries to their customers. It will also be essential to know where your customers are located in order to charge them the correct rate of VAT.
Start planning now for these important changes!