United Kingdom

Details

  • Service: Tax, Indirect Tax
  • Industry: Communications, Technology
  • Type: Business and industry issue
  • Date: 31/07/2013

VAT place of supply rules change significantly from 2015 

If your business makes supplies of telecommunications, broadcasting or electronically supplied services in the EU, from 1 January 2015 you will need to account for VAT in every EU Member State where you have non-taxable or private customers. Currently, these services are taxed where the supplier is established.

How will I account for VAT from 1 January 2015?

There are two compliance options; VAT register in each Member State where you make sales to non-business customers or use the Mini One Stop Shop (“MOSS”) simplification scheme. Watch our short video detailing the pros and cons of each.

 

Note: If you sell electronically supplied services (apps, e-books, music etc.) through an online third party platform, the platform may be responsible for the VAT.

Option 1: Use local VAT registrations

Some businesses may prefer to account for VAT using their existing EU VAT registrations or create new ones. This could result in a business having up to 28 different VAT registrations across the EU.

 

KPMG’s Global Services Compliance Solution can remove the burden of meeting multiple reporting obligations by offering a practical, centralised outsourced service to meet the VAT compliance needs of your business. Read more information in our KPMG’s Global Services Solution brochure. Contact Ruby Buckland (ruby.buckland@kpmg.co.uk) with any enquiries you may have related to this offering.

Option 2: The Mini One Stop Shop (MOSS)

A MOSS VAT registration will allow a business to account for all of its VAT via a single online web-portal. Whilst for some businesses this option may be attractive from an administrative standpoint, a MOSS VAT registration will equally create its own unique issues such as shorter payment deadlines and longer record keeping obligations.

 

KPMG's Client Outsourcing team can help your business to consolidate its data and submit its MOSS VAT return accurately and on time. Contact Joanne Moore (joanne.moore@kpmg.co.uk) with any enquiries relating to this offering.

2015 VAT Changes Survey

 

Businesses need to plan ahead for these changes as time is running out. In an effort to understand how this is impacting UK businesses, we commissioned a survey of decision makers in the online, retail, telecoms and media industries during September and October 2014. 156 businesses responded including small-sized (less than £10m turnover), mid-sized (turnover of between £10m-£500m), and larger businesses (turnover of over £500m). The survey summarises how much the change is costing, plans for pricing and commercial strategy and how businesses will be complying. View the 2015 VAT Changes Survey.

Where could #VAT2015 impact your system?

 

The key impacted areas are highlighted below against the different work streams. There will be additional areas that are affected and this will be largely dependent on the type of business and/or the organisational structure of the business.

More information

For more information on planning for the 2015 changes and how KPMG can help, please see the right hand banner of this webpage to watch our short videos, read our e-brochure exploring the commercial issues businesses will face and access links to helpful websites on the changes and relevant legislation.

 

Share this

Share this

Contact us

Amanda Tickel

Amanda Tickel

Partner, Indirect Tax

KPMG in the UK

020 7694 3780

amanda.tickel@kpmg.co.uk

Mike Camburn

Mike Camburn

Partner, Indirect Tax

KPMG in the UK

020 7694 8686

mike.camburn@kpmg.co.uk

Essential reading

View our VAT 2015 e-brochure

including useful tools such as:

  • 2015 stakeholder wheel
  • Timeline of legislation development
  • EU map and rates of VAT