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Posted Fri, 03 Nov 2023 09:14:51 GMT by marcusadamski
Hello all, I'm creating a website that will sell digital downloads. The seller is a limited company, but not VAT registered. If a digital product is sold to another UK resident, then 20% VAT will be included on the customer's invoice. However, if a digital product is purchased by a customer outside the UK (EU, US etc), how should VAT be reflected on the invoice? The digital product's value is low (approx. £15), and the volumes likely to be small. I've read online articles for advice, but the information is often contradictory. Thanks for any help in advance, 
Posted Tue, 07 Nov 2023 12:23:39 GMT by HMRC Admin 2
Hi,

If you make digital supplies to non business customers in the EC, then they will be outside the scope of UK VAT. However, they will be within the scope of VAT in the member state which you supply to.

You will then have the option of registering in the member states where your customers belong or registering for the VAT Mini One Stop Shop in one member state and account for the VAT to all your customers throughout the EC in that member state.

VAT rules for supplies of digital services to consumers

If you are supplying digital services outside the EU then again these will be outside the scope of UK VAT.

If you are supplying services outside the EC then it would be recommended to check with those countries as to whether there are any tax implications.

Thank you.

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