Do you sell digital services?

VAT on Digital Services

When you sell digital services across international borders from 1st January 2015, you will have to collect information about your customers to determine if they are businesses or not, and where they are based. From 2015 where your international sale is to a non-business customer, you will have to charge that customer VAT of the country where he or she is located (if that’s in the EU). You will have to register for VAT in your customer’s country. This is because the VAT threshold for traders selling into other EU countries is zero.

If you sell through a large online store, that store sorts out the VAT so you don’t have to worry about it. However, if you sell your digital product directly to non-business customers who are located in other EU countries from 1st January 2015, you must deal with the VAT consequences.

If you need any help and advice regarding making a disclosure please contact us at or call 0161 962 1855

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