Wow. That's pretty bad. I'm not sure do I understand this correctly (I hope not) but does that mean that if UK business sells few ebooks to other EU countries (say Spain, Germany, Lithuania), they would have to charge different VAT rate and deal separately with tax authorities of each country (which would require translators)?
Where digital services are supplied on a business to consumer basis, the supplier is responsible for accounting for VAT on the supply:
- to the tax authority
- at the VAT rate applicable
in the consumer’s EU member state.
The changes will create a level playing field for UK businesses by removing the current competitive advantage of EU member states with lower rates of VAT.
You need to identify the place where your consumer is based, has their permanent address, or usually resides. This will be the member state where VAT on the digital services supply is due. So if, for example, a UK citizen is an ‘expat’ who works or lives most of their time in Spain, then you, as the person supplying digital services to that consumer, should be charging Spanish VAT on those services and not UK VAT.
What if I'm unable to identify where customer is based? I cannot proceed with sale?
Also, US businesses are not exemption:
Businesses outside the EU (for example, the USA) that supply digital services to consumers in one or more EU member state are also affected by the changes.
The only good thing is you don't have to register for VAT if you're a small business (turnover less than £81,000) ,so these rules would be irrelevant.
https://www.gov.uk/vat-registration/when-to-registerThanks for sharing. Marry Christmas.