Changes in the European Union "place of supply" VAT rules mean that from 1st January 2015 certain businesses will need to take steps to ensure VAT compliance.
These changes mean that business to consumer (B2C) suppliers of broadcasting, telecommunications and electronic services (BTE) will be liable to pay VAT in the member state where the customer is resident. Until this point suppliers of BTE have only been liable to pay VAT in the country in which they are established.
The rules will apply even if your business is not registered for VAT. There are no minimum thresholds, which means that you will be required to register for VAT in a member state as soon as you supply a customer in that country.
Will my business be affected?
Business to business (B2B) trade should remain largely unaffected, as will certain e-Commerce businesses. However, it will be important to determine whether or not your customer is a business customer in order to avoid incurring penalty costs.
VAT International PLC help to familiarise businesses with the 2015 VAT rule changes and support companies in the transition and ongoing compliance obligations.
This includes determining whether your business will be affected by the change, identifying relevant business to consumer (B2C) transactions and handling the additional administrative burden resulting from the changes.
What are my options?
There are various options available to you, including registering for VAT in a single country and processing all VAT payable from EU trade under this registration. It's important to consider whether this "mini one stop shop" option is the right step for your business, simplifying compliance and reducing the administrative complexity.
We know that you are likely to have more questions about the 2015 VAT rule changes. Please don't hesitate to contact our expert e-service team to discuss your options.