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New Tax rules - will they affect you?

03 Dec 2014 4:15 PM | Deleted user
New Government Tax rules come into operation on the 1st January 2015 and will affect you if you sell any downloads over the internet. 

Called VAT MOSS, this new scheme is likely to affect anyone acting as a sole trader who sells a download from their website. 

The current situation as to what classifies as "download" is not completely clear - but it will affect download of music, e-books and possibly e-learning modules, although live teaching over the internet is unaffected. 

The confusion is over whether what you supply are "goods" or a "service" 

You can find information from these links 

rachelandrew.co.uk/archives/2014/11/25/how-small-companies-and-freelancers-can-deal-with-the-vatmoss-eu-vat-changes/ 

www.gov.uk/register-and-use-the-vat-mini-one-stop-shop 

If you sell anything over the internet you will need to speak to your accountant NOW. 

Even if your earnings are well under the VAT threshold, if you sell just one MP3 as download from your website, you need to register for VAT MOSS. 

If you sell through a 3rd party, do not assume that they are covered for VAT MOSS, you may still be liable. (PayPal are not a 3rd party in this situation!) 

Don't get caught out! 

Do your research, talk to your accountant, and if you are in doubt whether it affects you or not, remove the downloads from your website on the 1st of January until you are certain about the implications for your personal situation. 

As of 3/12/14 the situation is not clear, so keep checking for updates! 



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