VAT rules in Europe about to change for eBook sales

As noted by us back in July last year, VAT rules for eBooks in Europe are about to change – the details are shown below and on the HMRC website for UK publishers:

HMRC UK: “On 1 January 2015, changes will be made to the European Union (EU) VAT Place of Supply rules involving business to consumer supplies of telecommunications, broadcasting and e-services.

Currently, the place of taxation is determined by the location of the business supplier of these services. However, from 1 January 2015, it will be determined by the location of the customer who receives the service.

To save businesses who supply these services from having to register for VAT in every EU Member State where they have customers, the VAT Mini One Stop Shop (MOSS) online service will be introduced to ease administrative burdens and simplify VAT compliance rules. VAT MOSS will give those businesses the option of registering in just one Member State, such as the UK, where they will be able to account for the VAT due in all Member States (at each Member State’s own tax rate) by submitting a single MOSS Return to HMRC.

Although VAT MOSS will not be available to use until 1 January 2015, businesses can register to use it from October 2014.”

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