Readers’ forum: EU VAT

We have a client who downloads software from an EU country on a regular basis but this only amounts to about £4 000 in total for the entire year. The client is not VAT registered. Previously he was liable for VAT charged by the EU country at their rate of VAT. It would now seem that he is not charged any VAT.

If my understanding is correct this would make it more economic to download such software from abroad rather than to use a UK alternative. But surely this cannot be what was intended.

Can readers tell me if I might be missing something?

Query 19 780 – Bensden.

Supply is ‘where the customer belongs’

It may be that the supplier or HMRC have missed something. Between EU member states supplies of electronically supplied services to non-taxable persons are supposed to be ‘supplied where the customer...