John  McCarthy  CEO  of  Taxamo  

2015  EU  VAT  Change  for  eServices    

 

PRESENTATION OUTLINE

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Who  is  affected?  

 What  are  the  changes?  

 What  does  this  mean  for  you?  

           What  do  you  do  next?  

Who do the changes affect?  v  SoEware  and  soEware  upgrades  

v  Web  design,  data  storage,  hosJng,  VoIP  and  content  

v  Music,  e-­‐books,  films,  images  and  photographs    v  Gambling  &  games  

v  Marketplaces  

v  Digital  goods  and  subscripJons  

v  Distance  teaching  &  training  

eService  Providers…  

The Change

Today  VAT  based  on  where  the    

eService  Provider  is  located  

Jan  1  2015  VAT  based  on  where  the    Consumer  is  located  

Numbers

•  34,000  merchants  in  the  UK  

•  240,000  merchants  in  the  EU  

•  +  merchants  selling  into  the  EU    

What is the Change?

v You  need  to  idenJfy  the  country  of  each  customer  

v You  need  to  find  two  pieces  of  non  conflicJng  evidence  

v You  must  apply  the  VAT  rate  of  the  country  where  the  consumer  is  based  

v You  need  to  remit  this  VAT  through  the  MOSS  

How do I identify my customer?

Legisla;on  states      v  IP  address  

v  Billing  address  

v  Bank  Details  

v Mobile  country  code    v  Other  commercially  relevant  informaJon  

✔  ✔  

✔  ✗  

✔  

Apply the VAT rate of the country

28  Member  States  

Normal  &  reduced  rates  

File & settle VAT through MOSS  v Mini  One  Stop  Shop  

v Register  with  your  own  Tax  authority  v Log  on  @  h`p://www.hmrc.gov.uk/posmoss/  v Register  from  October  1st  

v File  a  return  once  a  quarter  

v Se`le  all  VAT  owing  with  your  tax  authority  

The Gotchas This  legislaJon  is  the  result  of  a  compromise…    v There  is  no  minimum  threshold    

v You  need  to  store  all  data  you  collect  for  10  years  and  be  open  to  an  audit  from  any  country  in  EU  

v There  are  different  invoicing  regulaJons  across  the  EU    v This  is  not  SEPA  –  There  will  be  no  extension!  

NON COMPLIANCE

FINES  FROM  TAX  AUTHORITIES  

JAIL   RESTRICTIONS  ON  BUSINESS  EXPANSION  

What do you do next?

What does this mean for you?

You  need  to  start  planning  now…  

Learn More

Recommend  resources  

EU  Commission  website  

HMRC  website  

Taxamo    

taxamo.com  

blog.taxamo.com  

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