Digital firms’ VAT changes

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AROUND 7,000 businesses in the south east supplying digital services across the European Union will be able to register for a new online VAT service from October 20.

This will mean that they do not have to register VAT separately in each country where they do business.

The digital services affected include most types of broadcasting, telecommunications and e-service supplies.

Currently the place of taxation is where the supplier is established. From January 1, it will be where the consumer lives.

Sally Beggs, deputy director of indirect tax at HMRC, said: ‘The VAT MOSS will save digital services suppliers from having to register for VAT in every member state where they do business.

‘Businesses with their main operation or headquarters in the UK will register with HMRC to use the service.’