VAT rules for supplies of digital services to consumers
Find out about the VAT place of supply rules if your business sells digital services to private consumers.
Official website: gov.uk00
How to use the service
For VAT purposes the place of supply rules set a common framework for deciding in which country a transaction should be subject to tax. For supplies of cross-border digital services to non-business consumers you should check: the location of your consumer whether it’s a digital service – if it is not, the general place of supply of services rules will apply whether your customer is a business or a private consumer if you are a UK business and the supply is not made in the UK, you’ll need to check the rules in the country of the customer, as you may have to register for VAT or its equivalent in the country
Fees
A business which makes cross-border digital service supplies must get and keep 2 pieces of information as evidence of where a consumer normally lives. This shows that the correct rate of VAT has been charged and will be accounted for to the correct tax jurisdiction. For many micro and small businesses this requirement may be challenging. For micro and small businesses that use payment service providers, try the following approach: at the point of sale, ask the consumer for details of either their: billing address, including the country telephone number, including the country dialling code when the consumer pays for the digital service, you’ll need to get from the payment service provider a notification advice containing the 2-digit country code of the consumer’s country of residence as listed in their records If the 2 pieces of information match, that’ll be enough to define the consumer’s location and you can record the details in your accounting records. If the information does not ma
Official source
VAT rules for supplies of digital services to consumers
retrieved: