Digital Service Providers - New VAT Rules From 1st January 2015

The VAT rules for cross border supplies to customers based elsewhere in Europe have changed such that VAT is due in the country where the customer normally lives, rather than where the supplier is established. This is intended to prevent suppliers of digital services unfairly undercutting UK based suppliers by locating in an EU member state with a lower VAT rate.

Digital services include broadcasting, telecommunications and e-services that are supplied electronically.
So that you do not have to register for VAT in every member state, HMRC have developed a ‘Mini One Stop Shop’ for UK based suppliers of digital services. This is a separate registration through which the VAT due on electronically supplied digital services delivered throughout Europe should be declared.