VAT on services provided outside of the United Kingdom is a complex area and has changed from January 2021 with Brexit. The pre-January 1, 2021, procedures for Digital Sales into the EU, especially MOSS (Mini One Stop Shop) managed by the United Kingdom and the European Union (10,000 EUR or 8,818 GBP threshold), no longer apply.
Digital Services to Consumers
Digital Services are defined thoroughly under the VAT laws of both the UK and the EU. Generally, Digital Service is one that is supplied with little or no human participation and with a high degree of automation. These include:
The following are the important factors to consider for B2C digital sales into the UK:
For further information, see HMRC Guidance:
Latest update as of 28 March 2022:
You can no longer email HMRC to check whether you supply digital services. The online form provided on the website should be used to write to HMRC, or through the phone.
If your supplies are liable to UK VAT, we can help you register for UK VAT if you are based outside the UK.