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Many Members have been contacted by constituents concerned about the impact on small businesses of a change in the way digital supplies are treated for VAT. From 1 January 2015 businesses supplying telecommunications, broadcasting and e-services to consumers in other Member States must account for VAT in the Member State in which the customer is located rather than where the supplier is located.[1] This note provides some background on this change and the Government’s response to these concerns.

[1]     European Commission, Questions & Answers: VAT changes from 2015, July 2014

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