VAT Place of supply of digital services and VAT Mini One Stop Shop (MOSS) guidance

On 1 January 2015, new VAT place of supply rules will come into effect for business to consumer transactions (B2C) supplies of broadcasting, telecommunications and e-services (‘digital services’).

The current VAT place of supply rules for business to business (B2B) supplies are unaffected.

The primary purpose of this guidance is to provide UK businesses with information in the period leading up to the 1 January 2015 implementation date. This is to help them to prepare for the rule change, as well as to decide whether or not they want to register to use the related EU VAT Mini One Stop Shop (MOSS) simplification scheme.

It should be noted that the European Commission has published detailed Explanatory Notes, giving its view on how the VAT place of supply of services and VAT MOSS legislation should be interpreted and applied across the EU.

It is recommended that businesses also consult this guidance, which can be found on the Commission’s DG TAXUD website.

Although the Notes are not binding on Member States, they have been produced in consultation with tax authorities and businesses from across the EU.