Have you prepared for the new EU VAT laws that came into effect on the 1st January 2015?
The general info, for those of you that do not know, you must now charge VAT to your European clients at their countries VAT rate, for digital goods (e-books, downloadable software, web hosting etc), even if your business operates from outside the EU. You can see more info here
. You do not need to charge VAT to businesses though (a business being classed as a business that is VAT registered, if they are not VAT registered then you need to charge them VAT).
- UK VAT Guide - An informative page about it
- *MOSS UK - Mini-One-Stop-Shop UK, register, and pay all your VAT in one place
- *MOSS Ireland - Mini-One-Stop-Shop Ireland, register, and pay all your VAT in one place
*You can register in any European country. I've provided links to the UK & Ireland sites (you can also register in all 28 European Union Countries if you want, and submit 28 VAT returns every quarter).
- You need to keep two pieces of identifying information, like clients valid address and IP.
- You must charge anyone who resides in the European Union (at the countries VAT rate), who does not provide youi with a valid VAT registration number.
- You need to keep records for 10 years.
- Taxes are due every Quarter on the 20th of the following month (April, July, October, January). You submit them to the MOSS site you registered with, and they distribute them to the relevent EU countries.
- You are meant to signup, and charge European clients VAT, whether your business is operating from Europe, the USA, Canada, Australia etc (any country (especially those with tax treaties with the European Union, or any member of the European Union)). Failure to do so could result in fines, back payment of owed VAT (up to 10 years), interest, and possibly prosecution).