1. Due to the new European VAT regulations on digital goods, starting January 1 st, 2015, the place of taxation will be determined by the location of the consumer. From 1 January 2015, businesses will need to charge and account for VAT in the EU country where the customer consumes the service, irrespective of whether they are an EU or non-EU supplier. VAT is due on digital services in accordance with the rules of the consumers’ member states.
2. Where a customer provides his VAT number, he is treated as a business customer.
3. Where the customer is not a business customer, VAT should be due in the customer's location.
4. Vat Application
a) VAT is not applied to purchases made outside the European Union.
b) VAT is not applied to purchases made within the European Union, excluding United Kingdom, if the VAT number is provided.
c) VAT is applied to purchases made within in the European Union if the VAT number is not provided, the place of taxation will be determined by the location of the consumer. Due to the European VAT Regulations on digital goods, starting January 1st, 2015 VAT will be calculated in accordance with the rules of the consumers’ member state. VAT is applied to all purchases made from consumers located in United Kingdom regardless of VAT number.
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