Taxamo video explains the #vatmoss changes
As it stands, come 1st January 1st 2015 there will be new rules governing VAT when it comes to sellers of digital products in the EU.
In particular, the VAT rate charged will depend on the location of the buyer not the sellers and there will be no lower threshold. So whatever amount you sell, you still have to file a VAT return.
As Taxamo note this will mean some quite considerable admin headaches for SMEs. They’ll have to:
– Identify the location of their customers
– Apply the correct VAT rate
– Validate VAT numbers for B2B transactions
– Collect evidence to verify the location of the customer
– Store evidence for 10 years
– Create a quarterly EU MOSS return
– Issue e-invoices
– Be audit ready
I’ve been talking to SMEs this week who would be impacted but hadn’t hard of the is change coming in less than a month. This video should explain the basics.