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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I would to know if my company should apply VAT to European

Resolved Question:

Hello I would to know if my company should apply VAT to European customers. It is a limited company providing online marketing services.
Regards
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.

Please advise if your customers are VAT registered in their respective countries

Many thanks
Customer: replied 1 year ago.

Hello and thank you

Indeed one is registered in Belgium.

Regards

Expert:  taxadvisor.uk replied 1 year ago.
Melissa, thank you for your reply.There have been some changes to EU VAT legislation wef 1 Jan 2015 relting to selling of digital goods or e-services to consumers in the EU.It appears your business activity does not fall in this category.More information on what has changed can be found herehttp://www.smallbusiness.co.uk/financing-a-business/accounts-and-tax/2475862/eu-vat-changes-affecting-digital-content-and-eservice-sellers.thtmlIf you are supplying a service to customer based in EU member state and the customer is VAT registered then the supply would be a taxable supply but zero-rated.I hope this is helpful and answers your question. If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.

Hi,

I was wondering whether or not I fit in this category because for instance I sent email marketing campaigns where customers have to click on a call to action to download a booklet.

For other customers I have to create all the Google Adwords campaigns where recipes can be downloaded.

Regards

Expert:  taxadvisor.uk replied 1 year ago.
Melissa, thanks for your reply and for additional information.

Based on what you have now disclosed, some activity would be affected by the new legislation and you are advised to register for MOSS (Mini One Stop Shop) with HMRC.
More information on how to register can be found here
https://www.gov.uk/guidance/register-and-use-the-vat-mini-one-stop-shop

Some of your activities would be deened electronically supplied services and these are covered here
http://ambergreeninternetmarketing.com/blog/eu-e-commerce-vat-law-changes-2015/

In that case, VAT would be applicable at 20%.

I hope this is helpful.
Customer: replied 1 year ago.

Hi again

Could you please clarify, there would be 20% VAT for businesses also?

Regards

Expert:  taxadvisor.uk replied 1 year ago.
Melissa, thank you for reply.

The charge of 20% (standard rate) would apply to all customers. Business customers would be able to reclaim VAT applied as their VAT input.

I hope this is helpful.
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4937
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.

Best wishes.
Customer: replied 1 year ago.

Could you please confirm me that 20% VAT rate applies to VAT registered in Belgium and Nederland based on the above info.

Regards

Expert:  taxadvisor.uk replied 1 year ago.
Melissa, thank you for reply.

If you register for MOSS with HMRC then the charge of 20% (standard rate) would apply to all customers whether they are based and registered for VAT in Belgium, Netherlands or the UK.

I hope this is helpful

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