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Where Taxpayers and Advisers Meet

Non automated digital sales worldwide.

Dazboj
Posts:2
Joined:Fri Feb 24, 2017 11:40 am
Non automated digital sales worldwide.

Postby Dazboj » Fri Feb 24, 2017 11:50 am

Hi,
I am a U.K. VAT registered limited company.
I make and sell mobile phone apps.
So far my VAT has been quite simple as Apple handle all VAT payments so we don't have to pay VAT on what Apple pay us.

Moving forward, I am going to start selling an additional service within an app that requires some personal communications and manual adjustments of code to give you user what they ordered.

After doing some research, I believe this manual intervention would put the sales outside the scope of VAT MOSS.

So my question is, what should I do regarding VAT outside of MOSS?

I'm thinking I need to add 20% VAT on to any U.K. Sales.
Zero VAT for none EU sales.
??? For EU sales?

Thank you.

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: Non automated digital sales worldwide.

Postby les35 » Fri Feb 24, 2017 6:23 pm

The supplies look to be General Rule supplies. Where these are B2B, then they are outside the scope of UK VAT. You need a customer's VAT number, and reporting on EC Sales Lists. For non-EU customers, other evidence that they are in business will suffice. No EC Sales List is required for non-EU sales.
For B2C sales, UK VAT applies, unless the supplies were to be zero rated or exempt in their own right, which I suspect is unlikely.

Dazboj
Posts:2
Joined:Fri Feb 24, 2017 11:40 am

Re: Non automated digital sales worldwide.

Postby Dazboj » Fri Feb 24, 2017 7:40 pm

They are B2C, so are you saying I only need to charge VAT when supplied to UK, and nothing to any other country?

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: Non automated digital sales worldwide.

Postby les35 » Mon Feb 27, 2017 10:14 am

No. B2C supplies are deemed to be supplied where the supplier is located, so UK VAT applies. It is not relevant where the customer is located.


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