Internet World presentation
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Transcript of Internet World presentation
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John McCarthy CEO of Taxamo
2015 EU VAT Change for eServices
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PRESENTATION OUTLINE
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Who is affected?
What are the changes?
What does this mean for you?
What do you do next?
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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…
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The Change
Today VAT based on where the
eService Provider is located
Jan 1 2015 VAT based on where the Consumer is located
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Numbers
• 34,000 merchants in the UK
• 240,000 merchants in the EU
• + merchants selling into the EU
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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
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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
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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
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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!
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NON COMPLIANCE
FINES FROM TAX AUTHORITIES
JAIL RESTRICTIONS ON BUSINESS EXPANSION
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What do you do next?
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What does this mean for you?
You need to start planning now…
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Learn More
Recommend resources
EU Commission website
HMRC website
Taxamo
taxamo.com
blog.taxamo.com
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2 7 W E E K S TO GO
ONLY