I’m fairly confused after reading that! I need to read it again after more coffee. But my understanding is:
B2C customers used to be taxed according to the location of the seller. Now they will be taxed according to the location of the buyer from 01-Apr-15. But only for electronic goods.
I have to have 2 items of proof of where the consumer lives (e.g. address and IP) and I have to keep this for 10 years.
If my customer buys through Avangate, then Avangate are going to handle all of this for me. Hooray!
There is no change for B2B sales of electronic goods I sell direct. If they are in the UK, I charge them 20% VAT. If they are in the EU (but not in the UK) I charge them ex VAT under reverse charge.
There is no change for in-person consulting I sell direct. I charge them UK VAT rate if they are in the EU.
I don’t have to declare digital goods sales on the EC sales list if they are declated using MOSS. But I will still have to declare non-digital sales (e.g. consulting).
So if I sell them a licence key and a CD, do I have to charge UK rate VAT on the CD and buyer rate VAT on the licence?
Where does MOSS fit in? Do I have to register for MOSS if I am making B2C sales? Should I register for MOSS if I am only making B2B sales?
It is rare that I make B2C sales direct these days. Maybe I just won’t sell to consumers direct.
Would love some clarification on the above.