December 2014

UK BRIEFING - VAT and Digital Supplies to Consumers


From 1 January 2015, for all ‘digital' supplies to EU consumers, VAT will be due in the country of consumption rather than in the country where the supplier is based.

The new rules do not just apply to companies like Amazon - they also apply to UK businesses making supplies to consumers in other EU member states.Example: Where a UK consumer downloads an e-book onto their Kindle, Amazon will in future pay VAT in the UK rather than in Luxembourg, where they are based.