I wonder whether someone has come across this before as I am wrestling with definitions etc.
With MOSS hitting us in Jan 15, this will effect those selling Digital Products into the EEC. Would this have an effect on Digital Books that are sold cross border. Whilst I know the status of "printed matter" do we think that this stretches to Digital Books to that are sold into EEC.
Any pointers would be really appreciated.
Thanks
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Possibly
Digital books would be caught as long as they are delivered with little or no human intervention. If sales are through Amazon they you'd need to look at the contract to see who you were making the sale to as it may be to Amazon or they may be an agent.
It does include
E-Books.
See 1.1 here: https://www.gov.uk/government/publications/vat-supplying-digital-service...
I’ve been looking at this…
because I have several clients who sell items that are downloaded and none of them have heard of MOSS. One example is selling party supplies online which includes themed invitations, banners, cupcake wrappers, etc. that are downloaded and then printed for use. My view is that they fall in the same category as e-books.
As I understand it VAT must be charged at the rate applicable in the consumer’s home state. One little gem from GOV.UK when determining the location of the consumer is: “on board transport travelling between different countries in the EU (for example, by boat or train), the consumer location will be the place of departure for the consumer’s journey”.
Returns, on a spreadsheet HMRC will be issueing shortly, and payment will be due quarterly while for input tax (which I presume MS, Google, Adobe, etc. will start charging from January) “you should recover that input tax through your domestic VAT return”.
Meanwhile software suppliers don’t seem to have considered this. Sage support, for example, suggested creating a VAT code for each member state, and they have put forward a suggestion for an article for their Knowledge Base.
Should I be concerned or or simply accept the figures that clients give me.
Thanks all.....I think the debate will trundle on as so far it ain't that clear. I for one will most probably be erring on the side of charging the VAT rate applicable in that country which will include e-books. I have also urged the client to discuss this with Amazon to enquire as to whether they act as Agent or Principal, in which case they will have to account for the VAT.