JC’s Blog

1203, 2020

VAT changes to the supply of digital services

In the past, selling digital goods (ie music) required VAT registration and entry into the MOSS scheme. In it's self it wasn't expensive, but the additional accountancy costs were prohibitive to be VAT compliant, particularly in the light of the relatively small earnings that could be made from music sales. By way of trying to find an effective and fair solution to this situation, I started making music available as a free download whilst encouraging people to make a donation if they liked the tune. This has been very successful on the first release using this 'honesty box' method. It's now come to light following a discussion with the HMRC that provided you are not charging VAT, that your sales [...]