The UK tax authority HMRC has issued a briefing on changes to the VAT place of supply rules affecting telecommunications, broadcasting and e-services from 1 January 2015. From that date where these services are supplied from a business established in one member state to consumers in another member state they will be taxable in the state where the consumer is located.  Currently the services are taxed in the member state where the business is established. Businesses supplying these services to customers in the UK would therefore need to register and account for VAT in the UK in respect of those supplies.

UK businesses supplying telecommunications, broadcasting and e-services would therefore the introduction of a mini one stop shop (MOSS).  This is an IT system that gives UK businesses the chance to register in the UK and account for VAT in all the EU countries where they do business through a single return in the UK.  UK businesses will have the chance to register for MOSS from July 2014 and the system will be live from 1 January 2015.

Telecommunications services would include fixed and mobile telephone services, access to the internet and worldwide web and paging services. Broadcasting services would include radio and television programs transmitted through radio or television network or live broadcasts over the internet.  E-services would include downloaded apps, gaming, e-books, anti-virus software or on-line auctions.