New EU VAT rules

edited January 2015 in Brick Owl Vote Up0Vote Down
From today any business selling electronically supplied services (digital services) to private consumers or to organisations that are not ‘in business’ (eg certain charities and public bodies) are required to charge the relevant VAT rate of the country where that customer is located, rather than the relevant VAT rate local to the seller.

This won't affect most sellers but any EU-based seller who sells or intends to sell downloadable pdf instructions on Brick Owl should be aware of the changes.

Comments

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  • edited January 2015 Vote Up0Vote Down
    Further to the above.

    It has become apparent that the new rules affect all businesses selling digital goods in the EU even if they themselves are based outside the EU. It's not especially clear how EU member states would actually police such sellers who contravene the rules, but given the plethora of Dual Taxation Agreements out there, it's possible that failing to abide by them might result in action from your locally based tax authorities.

    Anyone selling in the 'Custom Instructions' category should consider reviewing the implications of these new rules. Furthermore, it might be a good idea if Admin could prevent EU-based buyers from purchasing items in this category, unless they do so from a seller actually that "opts in" and confirms they meet the necessary requirements.
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