Tax barristers will be jumping with joy. HMRC has issued a consultation re EU level changes for VAT place of supply rules as well as VAT Mini One Stop Shop (MOSS) and I understand we will see amendments to UK VAT in the Finance Act 2014.
This follows a draft regulation to amend VAT rules regarding the supply of telecomms, broadcasting & electronic services, real estate services & distribution of tickets for entry to cultural, artistic, sporting, scientific, educational, entertainment & similar events from 1st January 2015. This means that as of 2015 all such services will be liable for tax at where the consumer belongs and applies even where the customer is a non-taxable person, unless the rule on effective use and employment is applicable.
HMRC’s document outlines the intended approach for a smooth transition from 2015 which is essentially through simplified financial reporting requirements via the VAT (online) MOSS service. From October 2014, businesses may register in the UK for VAT due, for business-to-consumer supplies of these services, through submission of a single HMRC return.
Tax Barrister, Accountant