- HMRC has sent letters to overseas businesses selling digital services to UK customers on a B2C basis
- The letters are part of a campaign to identify businesses with a historical obligation to register and account for UK VAT
- HMRC may be targeting businesses that reported and paid UK VAT under their EU MOSS registration but did not separately register for UK VAT post-Brexit
- Businesses have 30 days to respond to the letters or face compulsory registration, estimated VAT due, and penalties
- Businesses need to consider if their services are digital for VAT purposes, sales details, and evidence requirements for B2B and B2C supplies.
Source: ey.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
