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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
✔ ✔
✔ ✗
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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
2 7 W E E K S TO GO
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