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Posted Wed, 21 Feb 2024 17:05:48 GMT by
I want to clarify something regarding selling digital products to a customer in the UK as I can't an explicit statement about it anywhere on the gov.uk site. (I am also in the UK) According to this page : https://www.gov.uk/how-vat-works ... "Businesses have to register for VAT if their VAT taxable turnover is more than £85,000. They can also choose to register if their turnover is less than £85,000." It doesn't say anything about a different rule if you're supplying digital products. Yet I keep seeing on other sites that this threshold doesn't apply to digital products, and that if I sell digital products I MUST charge VAT and therefore I MUST register regardless of turnover, but it's impossible to tell what's out of date and what isn't. Please clarify: Does the £85,000 turnover threshold apply across the board regardless of whether I'm selling digital products, or not? If it used to be the case that the threshold did not apply when selling digital products, when did the rules change? If it's still the case that the threshold does NOT apply to digital products, where in the guidance does it actually say that? Thanks
Posted Fri, 23 Feb 2024 10:13:43 GMT by HMRC Admin 25 Response
Hi coach,
The following guidance answers your queries:
How to determine the place of supply and taxation
Thank you. 
Posted Fri, 23 Aug 2024 18:22:31 GMT by marialynn73 lynn
Hi, I am also wondering the same. The link on the page to the HRMC website doesn't clarify the above. If I am selling digital products, and i'm not currently VAT registered because I dont meet the threshold, does this mean I therefore dont need to charge VAT on my digital product sales, or do I need to register for VAT regardless if I want to sell digital products? Thank you
Posted Tue, 03 Sep 2024 07:24:25 GMT by HMRC Admin 17 Response
Hi.

Please could you clarify where your company is based and whether you are supplying these services to consumers in the UK
or businesses in the UK.

Thank you .
Posted Tue, 10 Sep 2024 08:41:51 GMT by Amber Hatch
I have the same question. I am supplying audiobooks, therefore a digital product. I am based in the UK. I do not meet the threshold for VAT and I am not registered. I will mainly be supply audiobooks to customers in the UK. I am currently using the platform payhip. They are charging vat on every sale. Do I need to charge VAT or not? And if I do charge vat, do I need to register?
Posted Wed, 18 Sep 2024 07:41:28 GMT by HMRC Admin 19 Response
Hi,
If you belong in the UK and you are making digital supplies below the value of the registration threshold then there is no entitlement to register for VAT. You can see the guidance here:
Working out whether you need to register
Thank you.

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