The aim of the changes is to reduce the number of transactions where the supplier in a business to business (B2B) sale charges VAT to an overseas customer. The rules prior to 31st December mainly relied upon the location of the supplier to determine the VAT liability.
From 1st January it is now the location of the customer for B2B sales, although for business to consumer sales it will still be the location of the supplier that is the relevant factor.
There are several complicating factors included in the new rules so please contact us if you need more information.
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