A. The provision of information which can be downloaded automatically from a website is deemed to be an electronically supplied service (“e-service”). Prior to 1 January 2015 e-services provided to individuals in the EU fell within the general rule for business to consumer (“B2C”) supplies meaning that the place of supply was where the supplier belonged and standard rate UK VAT would be charged.
Since 1 January 2015 e-services provided B2C in the EU fall within an exception to the general rule, moving the place of supply to where the customer belongs. This means that your client will be responsible for accounting for VAT in each EU customer’s member state at the appropriate rate of VAT in that country.
To remove the need for taxpayers like your client to VAT register in every EU country the VAT mini-one-stop-shop (MOSS) was introduced. This is a simplified system for declaring VAT on B2C supplies of e-services in those EU member states where the supplier is not established. Declarations for all member states are entered on a single return submitted calendar quarterly.
As your client is already VAT registered he can register for MOSS online. Detailed information can be found using the link below:
https://www.gov.uk/guidance/register-and-use-the-vat-mini-one-stop-shop
Supplies of e-services to individuals outside the EU continue to be treated as supplied where the customer belongs and are outside the scope of VAT. Your client should still record the supply in Box 6 of his VAT return however.
