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UK digital providers 6-month holiday on customer info

  • VAT
  • 29 December 2014 | Richard Asquith

UK digital providers 6-month holiday on customer info

The UK's HMRC has granted micro providers of digital services a six-month transition period on meeting the exact requirements of the EU customer residency information rules.

Under the new 2015 B2C EU VAT rules for providers of electronic, broadcast and telephony services to consumers, EU-based providers must now charge the VAT rate of their customers' country.  Previously they only had to charge the VAT rate of their own country.  The European Union has provided detailed rules on the levels of information required to prove the country of residency, including up to three pieces of non-conflicting information.

The new rules had placed the biggest burden on UK micro-businesses (businesses not UK VAT registered because they are below the UK's £81,000 per annum VAT registration threshold) who will now be forced to VAT register to report their EU sales through the MOSS portal.  Earlier this month, the UK had conceded that micro-businesses would only report EU digital services VAT.

To help these businesses to adjust, HMRC has this week allowed such micro-businesses to forego the requirement to capture all the non-conflicting information until after 1 July 2015.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.