VAT Digital Services Directive – Special Scheme

Why do I need to calculate VAT?

A new law has been passed such that non-EU suppliers of digital products or services to EU consumers (B2C) will now have to be identified for VAT in the EU. They will also have to calculate VAT on the value of their supplies at the VAT rate of each EU country where their supply is consumed. Additionally, they will have to file VAT Returns and maintain detailed records which may be audited by the authorities in both the countries of registration, as well as the countries in which their supplies are consumed. The new law is complex and became effective on 1 July 2003. Urgent action is therefore necessary.

FREE assessment and VAT calculation under the Special Scheme

All you have to do is to answer a few simple questions regarding your digital product or service and where and to whom it is targeted in general terms. Your answers will enable us to give you a FREE assessment as to whether you qualify under the new Special Scheme regulations. If you do, you will be able to take advantage of the option to be registered in one country only, thus saving considerable compliance costs compared to the expensive alternative of having to be registered in all the EU countries. You will be better prepared and compliant compared to your competitors who run the risk of government action against them if they fail to make the changes before the imminent deadline. Better still – this initial assessment service is completely FREE of charge!

What do I do next?

If the Special Scheme does apply to you, you need to be registered with an EU Member State to obtain an identification number. You will have to account for VAT in that State in respect of your supplies EU-wide. We can assist in your registration and compliance matters such as the preparation of the Special Scheme VAT Returns which will require to be filed within tight deadlines. We can also assist you in the maintenance of your records and represent you if the authorities wish to perform an audit. Our charges for registration, filing and other compliance services will be available in due course.

For further information / consultation or a free assesment please contact us.