If you provide any electronic services then this may affect
you.
Electronic services are services delivered in an essentially
automated way, with no real human intervention. Typically they
involve downloading text or sound/vision files.
If you sell such services and any of your customers are private
purchasers who are located in other EU states, then you need to
prepare for a change that takes place on 1 January 2015. From that
date you will need to account for VAT, at the local rate, for
services provided to such purchasers. To 'facilitate' this,
there will be an arrangement whereby you register to submit a
return covering the other EU states, and on which you will specify
the supplies made to each state and the VAT that needs to be paid
to each. You then make one payment covering the entire aggregate
liability, and HMRC does the rest of the work for you. You cannot
simply continue to account for UK VAT instead.
