VAT MOSS for sellers

Changes to VAT rules on sales of digital downloads came into force on 1st January 2015. For sellers, these changes apply only to digital downloads of sheet music and music tracks. The changes do not affect mail order of CDs and hard copy sheet music.

Previously, for sales to the UK and other countries in the European Union, VAT was charged on downloads at the UK rate of 20% and we have followed the principle that as an agent for your sales, VAT would only be applied where you as seller were already registered for VAT.

Under the new rules, all download sales must include VAT but this is to be charged at the rate of the European territory where the purchase is made, so a purchase from Italy attracts the Italian VAT rate of 22% or a purchase from Germany attracts the German VAT rate of 19%.

These rules have been introduced to address the tax avoidance by large companies such as Amazon and iTunes, but of course, much smaller companies and even individual sole traders are being penalized as a result!

What will this mean for tutti and for you as a tutti seller?

For tutti -

We are now classed as a supplier of services and as a consequence, all digital downloads must charge VAT and at the rate of the European territory where the purchase comes from.

This has meant a considerable project to make the website compliant. We implemented this upgrade before the end of 2014 to be compliant by the start date of 1st January 2015.

We automatically apply VAT to the current sale prices for digital downloads, where these are not already VAT-inclusive, and at the rate of the country to which the download is being delivered.

For you -

When you add new products, both physical copies for mail order and also digital downloadable products, you will be asked to give the selling price without VAT.

When we pay you for download sales, it will be on the base selling price without VAT as tutti will have to account to HMRC for the VAT liability.

The very good news for you is that you will not, personally, have to register for VAT for download sales in other European territories, because tutti is providing this service for you.

If you are already registered for VAT, you can continue to claim the VAT you pay for tutti services, but you will not need to declare the VAT element on download sales as tutti will account for this.

Please be aware that if you also sell from your own web-location, you will be responsible for compliance with the new rules. You will need to register for VAT MOSS (Mini One Stop Shop).

If you want to find out more, please go to -


Please be in touch if you have any questions.

Meanwhile, be assured that tutti will continue to offer your products for sale and will save you the considerable effort that VAT MOSS registration and administration would require.

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