Tax Changes ahead for e-commerce businessesThere is a shift in the way online businesses charge tax on products and services. It is not just gambling companies, but all purveyors of online merchandise. You may have seen the news that the UK government will tax based upon where the end-user is not as previously where the company was registered.
The new rules are expected to change the way in which taxes have been previously charged. It used to be that tax was charged according to where your business is located and the "local" tax rules there. However, now taxes are more and more likely to be charged where your customer is and what their law is.
This makes things a little more complex, for example selling goods to customers in the Republic of Ireland need to be charged 22% VAT (at today's rate) even if your business is situated in the UK with a lower VAT rate.
There are no hard and fast rules as yet and because of some free-trade arrangements there are different "guidelines" for various countries and even US states. Don't get caught out in the midst of this confusion.
Brick technology will be inviting a tax expert in to run a workshop in January 2015 at our offices to explain your obligations and what you need to do. Please call us to book your place (various dates are available).
Don't get caught out, the rules "may" be retro-active!