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EU VAT - Understanding European Tax The 2015   VAT changes  for e­services  are part of a special VAT scheme for  non­EU  businesses providing electronically supplied services to EU consumers (that is, private  individuals and non­business organisations). The   scheme   provides   an   optional,   simplified   means   of   registering   and   accounting  electronically for EU VAT with effect from July1, 2003. To prevent the need for such non­EU businesses registering in every EU member state  where they supply customers, this special scheme allows them to register and account  for EU VAT in a single EU member state of their choice.

The scheme does not apply to supplies to business customers in the EU – there is a  new directive regarding EU based e­service providers coming into effect on January 1,  2015.

1.INTRODUCTION: This information provides further information about the Special Scheme for non­EU  businesses supplying electronically supplied services to EU consumers (that is, private  individuals and non­business organisations).

The Special   Scheme   provides   an   optional,   simplified   means   of   registering   and  accounting electronically for VAT that is due in the EU with effect from July 1, 2003,  following implementationof the VAT  On E­Commerce   Directive. 2. LAW (PDFversionhere): Section 3A and Schedule 3B of the VAT Act 1994 provide for the Special Scheme. They  implement Article 26c of the EC Sixth Directive, added by Article 3 of the VAT on E­ Commerce Directive (Co.Dir.2002/38/EC). 3.REGISTRATION FOR THE



If you apply for the special scheme, you are required to comply with its conditions.  These include electronically registering, accounting for, and paying the VAT that is due  at the correct time. There are no penalties which apply under the special scheme. However, if you persistently fail to comply with its conditions, your registration may  be   cancelled. In that event, you would be required to register under the normal rules which apply  in the various member states where your customers belong. You could then be subject  to   any   penalties   which   those   member   states   apply. In   the   UK   this   includes   the   misdeclaration   penalty   for   large   or   repeated   errors,  interest   charged   on   under­declarations   and   the   penalty   for   evasion   involving  dishonesty. If you are supplying e­services to UK consumers and fail to register for VAT (either  under   the   special   scheme   or   under   the   normal   rules),   you   may   be   compulsorily  registered in the UK under the normal rules and may incur a late registration penalty. This varies from between 5% to 15% of the tax due, according to how late you were in  registering.

Eu vat understanding european tax  
Eu vat understanding european tax  

The 2015 VAT changes for e-services are part of a special VAT scheme for non-EU businesses providing electronically supplied services to EU...