Consultation outcome

Draft legislation: VAT supplies of electronic, telecommunication and broadcasting services orders 2018

This consultation has concluded

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Detail of outcome

Feedback from this consultation contributed to the legislation in this outcome. These documents will be laid in parliament on 19 November 2018.

Original consultation


This technical consultation seeks comments on draft HM Treasury orders for changes to the VAT treatment of business to consumer supplies of digital services.

This consultation ran from

Consultation description

HMRC has published draft statutory instruments for technical consultation.

This measure will make 2 changes to the rules for businesses making sales of digital services to consumers across the EU.

  1. Introduce a (sterling equivalent) €10,000 threshold for total supplies to the EU in a year of sales of digital services. This change means that businesses will only be subject to the VAT rules of their home country if their relevant sales across the EU in a year (and the preceding year) falls below this threshold. If the businesses total taxable turnover is below the UK VAT registration threshold they will be able to de-register from VAT. Businesses can continue to apply the current rules if they so choose.

  2. Allow non-EU businesses, which are registered for VAT for other purposes, to use the Mini One Stop Shop (MOSS) scheme to account for VAT on sales of digital services to consumers in EU member states. This group are currently excluded from using MOSS - a business facilitation system.

A draft tax information and impact note has also been published to explain the potential impact of the proposals on the economy, business, individuals, and other areas.

The legislation will take effect on 1 January 2019.


Published 11 September 2018
Last updated 19 November 2018 + show all updates
  1. Details of outcome and outcome documents have been added.
  2. First published.