Will leaving the EU affect legislation/VAT for online subscription-based services?

Question

Will leaving the EU affect legislation/VAT for online subscription-based services?

This questions was asked as part of our webinar on ‘What exporters need to know about Brexit in 2017’. You can find a recording of the webinar here:

http://opentoexport.com/webinars/what-exporters-need-to-know-about-brexit-in-2017/

Answer

hi Rachel
yes and no! the current EU legislation on electronic services already specifies how VAT is charged for non EU businesses supplying to EU consumers and EU businesses. see the following weblink:
http://ec.europa.eu/taxation_customs/business/vat/telecommunications-broadcasting-electronic-services_en
Having said that, if the legislation changes in the future, the UK will not be in decision making seat anymore and will be affected by any changes. Also, if EU member states change their VAT rates, UK businesses will have to keep on top of this.
Most the information about EU member states VAT rates, reverse charge procedure etc will still be available on the EU public website so this will help.
If you require further info or assistance, do not hesitate to contact your local EEN office in the Midlands, based at Birmingham Chamber of Commerce: tel 0121 455 0268 or email een@birmingham-chamber.com

Kind regards
Mathilde

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