Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Threat or opportunity?

17 June 2014 / Neil Warren
Issue: 4456 / Categories: Comment & Analysis , VAT

Problems posed by new EU VAT rules on UK suppliers of digital services


  • Digital sales to non-business customers will be taxed in the consumer’s country.
  • Requirement to be UK VAT-registered to obtain a MOSS registration.
  • Benefits of splitting a business.
  • Penalties may be issued from other EU tax authorities.

In the past week I have been in a state of shock twice over revelations about the new VAT rules for broadcasting telecommunication and electronic (BTE) services.

For readers not familiar with the new rules the basic principle is that a sale of digital services to non-business customers within the EU will be taxed in the consumer’s country from 1 January 2015 rather than that of the supplier – see Music Ltd below.


Music Ltd...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon