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Posted about a month ago by Gwinston Gab
Hello, here is my question: I have an LTD company. My content is available digitally for viewing and downloading. I sell my copyright content. (B2C sale) The payment is handled by a payment gateway for a fixed percentage, and it transfers the revenue to me. In return, I issue an invoice to them on a weekly basis. In the payment gateway system, the subscribers can be viewed and categorized. Now comes the part that I don't see very clearly. 95% of my end users are outside the UK (Europeans and Americans). My annual sales revenue from the UK is a maximum of 7000 pounds/year. Is it necessary for me to register for VAT in this case if I do not sell within the UK for £90,000, but my revenue exceeds this threshold? I read that in this case, I should register for VAT under the 'One Stop Shop' (OSS), but if I understood correctly, I first need a proper UK VAT registration. The accountant says, why would I want VAT registration if I barely do business in the UK? He doesn't really want to deal with it and has no real insight into it. I am very interested in what the exact procedure is in this situation. I hope to finally receive useful and accurate information here. Thank you.
Posted about a month ago by HMRC Admin 25 Response
Hi Gwinston Gab
If you are using a platform to sell your digital content to consumers then it would normally be the platform who would be responsible for accounting for the VAT.to ypur customers.
Please see below:
Digital portals, platforms, gateways and marketplaces
If the platform do not meet the requirements to account for the VAT on your behalf to your customers then you will be responsible for accounting for the VAT.
As you make these supplies to the EU there will be a responsibilty to account for the VAT in the EU, either by registering in each member state where you make these supplies or by registering for the Non-Union VAT MOSS scheme in an EU member state.
As the MOSS scheme is an overseas scheme I wouldn't be able to advise on what requirements they will make to register your business.
Please see the guidance below:
The place of supply of digital services
Thank you. 
Posted about a month ago by Gwinston Gab
Alright, thank you for the response. If I understand correctly, I do not need to charge VAT to UK users in this case? What about American users in this situation?
Posted about a month ago by HMRC Admin 19 Response
Hi,
If the platform are responsible for accounting for the VAT, then you will not need to charge VAT to your UK customers or customers in the USA.
Thank you.

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