Director of UK Private Client Services Vince Cheshire
explains how UK companies providing BTE services will be affected
by VAT changes next year.
With effect from 1 January 2015 changes will be made regarding
the
VAT treatment on the supply of broadcasting, telecommunications
and e-services (e.g. downloaded music, games, etc) for business to
consumer (B2C) transactions across the
EU. Consumer in this instance means a private individual.
Starting from this date the place of supply will be considered
to be the location of the consumer, whereas currently the place of
supply (and therefore the place of taxation) is considered to be
the location of the supplier. This change will mean that for each
relevant sale
UK suppliers (for example) will need to determine the location
of the customer and the VAT rate applicable in that jurisdiction.
Therefore, HMRC have issued guidance on how to determine the
location of customers and the records that need to be maintained,
in
