From 1st Jan 2015 your Ecenica invoices will reflect the new EU VAT rules.
On January 1 new EU VAT ‘place of supply of services’ rules come into force. Any company selling ‘digital services’ to customers located in the EU will need to charge and account for the VAT in the customer’s country.
How will the new EU VAT rules affect my Ecenica service?
The good news is if you have a UK billing address you won’t see any change.
Key facts
- New VAT rules come into effect on 1st January 2015.
- From 1st January 2015 your Ecenica invoices will show VAT based on your billing country.
- Importantly prices including VAT will not increase for UK customers
- New VAT rules do not require you to make any changes to your Ecenica account.
As a provider of digital services including web hosting we have had to update our invoicing procedures to reflect the new 2015 VAT rules. From 1st Jan 2015 we’ll be charging localised VAT rates for our web hosting services.
If you’re billing address is outside of the UK, your invoices dated from 1st January 2015 will show VAT at your local rate.
How will the new EU VAT rules effect my business?
If you sell ‘digital services’ you’ll need to charge and report VAT at the local rate of your client’s country using HMRC’s VAT MOSS (Mini One Stop Shop) portal.
So for example, a UK customer will need to be charged 20% VAT, a customer based in Germany will need to be charged 19% VAT and a client located in Sweden will need to be charged 25%. You’ll then need to report VAT collected to the member state.
Where can I get help with the new EU VAT rules?
If you sell digital services then HMRC have provided a helpful flowchart so you can quickly find out if you’re affected by the new VAT rules.
More information can also be found on the Gov.uk website
Twitter is also a great source for up to the minute info about the new VAT rules. Search #VATMOSS
Can you help me update my website to comply with the new VAT rules?
If you’re running an Ecommerce website selling digital goods and you’re looking for help updating your website for compliance with the new VAT rules then let us know and we’ll be happy to provide you with a free, no-obligation quotation for updating your website. Tweet us at @ecenica or email us at hello@ecenica.co.uk.