{"id":16811,"date":"2023-11-09T15:41:16","date_gmt":"2023-11-09T15:41:16","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=16811"},"modified":"2026-07-09T15:32:40","modified_gmt":"2026-07-09T14:32:40","slug":"a-guide-to-vat-for-digital-services","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/a-guide-to-vat-for-digital-services\/","title":{"rendered":"A guide to VAT for digital services"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tA guide to VAT for digital services\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2023-11-09T15:41:16+00:00\">9 November, 2023<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"A guide to VAT for digital services\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/a-guide-to-vat-for-digital-services\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/esthercooke\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/Esther-Cooke-350x350.jpg\" class=\"entry-author__image\" alt=\"Esther Cooke\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/Esther-Cooke-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/Esther-Cooke.jpg 500w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Esther Cooke<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Navigating the world of online business can be complex, and Brexit has made it even more important to stay up to date with tax changes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a small business owner, this guide is designed to provide you with a clear understanding of how digital services are defined and ensure you comply with VAT regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this article, we also break down the different rules that apply depending on whether you supply digital services within the UK or to overseas customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s what we cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#what\">What is VAT?<\/a><\/li>\n\n\n\n<li><a href=\"#are\">What are considered digital services?<\/a><\/li>\n\n\n\n<li><a href=\"#how\">How is UK VAT applied to digital services?<\/a><\/li>\n\n\n\n<li><a href=\"#place\">Place of supply rules for digital services<\/a><\/li>\n\n\n\n<li><a href=\"#eu\">EU VAT on digital services supplied to EU customers<\/a><\/li>\n\n\n\n<li><a href=\"#to\">How to determine your consumer&#8217;s location<\/a><\/li>\n\n\n\n<li><a href=\"#examples\">Examples of services supplied to EU customers<\/a><\/li>\n\n\n\n<li><a href=\"#final\">Final thoughts on digital services<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what\">What is VAT?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Value Added Tax (VAT) is a consumption tax added to most goods and services sold by VAT registered businesses in the UK (and many other countries too). <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">VAT is defined as an indirect tax because the business (the seller) pays the tax to the government rather than the person who ultimately bears the financial cost of the tax (the consumer).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a UK business, you must <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/register-for-vat-online\/\">register for VAT<\/a> if your VAT taxable turnover is more than \u00a385,000. You can also choose to register if your turnover is below the \u00a385,000 threshold.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">VAT on services provided outside of the UK has changed from January 2021 with Brexit, and now the UK and the European Union (EU) has separate VAT systems. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are a number of scenarios where, based on place of supply rules, a UK business might have to charge, collect and remit EU VAT. \u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Selling digital services to EU consumers is one of these scenarios.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"are\">What are considered digital services?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Broadly, a digital service is a sale delivered over the internet with no or next to no human intervention, and with a high degree of automation. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means the digital sale must be either:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Entirely automatic, for example, a consumer clicks &#8216;buy now&#8217; on the website and the content downloads onto their device,<\/li>\n\n\n\n<li>Or, basically automatic, because the small amount of manual process involved doesn&#8217;t change the nature of the supply from an e-service.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Some examples of digital content include images, text, e-books, PDF files, music, films, games, online magazines, apps, software and software updates, website supply and advertising space on a website.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using the internet to communicate or facilitate a sale doesn&#8217;t always mean that a business is supplying digital services. For example, lawyers and consultants who advise clients through email or provide professional courses where the content is delivered by a teacher over the internet.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC provided the following examples to illustrate what they do and do not consider to be a digital service:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Digital service<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An automatic email from the seller containing a PDF document<\/li>\n\n\n\n<li>Stock photographs available for automatic download<\/li>\n\n\n\n<li>Online course consisting of pre-recorded videos and downloadable PDFs<\/li>\n\n\n\n<li>Link to online content or download sent by manual email.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Not a digital service<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A PDF document manually emailed by seller<\/li>\n\n\n\n<li>Live webinar<\/li>\n\n\n\n<li>Online course consisting of pre-recorded videos and downloadable PDFs plus support from a live tutor<\/li>\n\n\n\n<li>Individually commissioned content sent in digital form, e.g. photographs, reports, medical results.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">There are also <a href=\"https:\/\/www.gov.uk\/guidance\/the-vat-rules-if-you-supply-digital-services-to-private-consumers#define-digital\">radio and TV broadcasting services, and telecommunications<\/a> to consider too.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is a fast-changing area, so we recommend you <a href=\"https:\/\/www.gov.uk\/government\/organisations\/hm-revenue-customs\/contact\/vat-enquiries\">contact HMRC<\/a> if you&#8217;re not sure whether your supplies are digital services or not.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how\">How is UK VAT applied to digital services?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you are a UK business that supplies digital services to UK customers then those supplies are liable to UK VAT. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The standard <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-vat-uk-vat-basics-from-sage\/\">VAT rate<\/a> of 20% is typically applied to the sale of digital services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, special VAT rules apply to publications, with certain electronically supplied publications being eligible for a zero rate of VAT.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The following electronically supplied products are entitled to this zero rate of VAT:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Books<\/li>\n\n\n\n<li>Journals and periodicals (including magazines)<\/li>\n\n\n\n<li>Booklets<\/li>\n\n\n\n<li>Children&#8217;s picture books<\/li>\n\n\n\n<li>Brochures<\/li>\n\n\n\n<li>Newspapers<\/li>\n\n\n\n<li>Leaflets<\/li>\n\n\n\n<li>Pamphlets<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s a list of exclusions that must apply the 20% VAT rate:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>E-publications where more than <strong>half<\/strong> of the publication is devoted to advertising, audio or video content<\/li>\n\n\n\n<li>Audiobooks (this zero rate of VAT only applies to electronic versions of books that can be read or looked at)<\/li>\n\n\n\n<li>Supplies of intellectual property<\/li>\n\n\n\n<li>Architectural and engineering drawings or plans &#8211; even if supplied electronically<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If you supply digital services to customers via a third party marketplace or platform, then the digital platform is responsible for accounting for VAT on the supply instead of you. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So if you supply digital services to consumers through a gateway, internet portal or marketplace you need to determine whether you&#8217;re making the supply to the customer or to the platform operator.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The platform operator is the one supplying the customer (and therefore responsible for accounting for the VAT payment that&#8217;s charged to the customer) if the platform operator sets the general terms and conditions, authorises payment or is responsible for the delivery or download of the digital service.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"place\">Place of supply rules for digital services<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The following rules will only apply to your business if you supply digital services to customers outside the UK.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Digital services are deemed supplied where the customer is located, so digital services supplied to customers outside the UK are not liable to UK VAT. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But they may still be liable to VAT in the country where the customer is based.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To correctly identify the VAT treatment of cross-border supplies, you need to know whether you&#8217;re supplying to a business or to a private consumer:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you supply to a business, it will be a B2B (Business to Business) transaction.<\/li>\n\n\n\n<li>If you supply to a private consumer, it will be a B2C (Business to Consumer) transaction. This includes supplying services to a business for non-business \/ private use.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If the customer provides their VAT number then they should be treated as a business customer. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If they don&#8217;t provide a VAT number then they must be treated as a private consumer, unless they can supply alternative evidence to prove they are a registered business and should be treated as a business customer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"eu\">EU VAT on digital services supplied to EU customers<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you are supplying a B2B digital service to an EU business customer, the customer is liable to pay VAT via reverse-charge in their country (this means the business buying the services declares both the output and input VAT). <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You as the UK business have no EU VAT obligations, and the supply is not subject to UK VAT.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are supplying a B2C digital service to an EU private consumer, your business has to charge, collect and remit EU VAT to the tax authority of the country where the customer resides.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, I sell digital services to a consumer in France. I need to charge and collect French VAT at the relevant rate in France and remit this to the French tax authorities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And unlike the UK VAT system where there is an \u00a385,000 threshold for VAT registration, there is currently no threshold for EU VAT and the liability is incurred after the first supply regardless of value. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, this is set to change in January 2025 under a new EU directive, <a href=\"https:\/\/www.consilium.europa.eu\/en\/press\/press-releases\/2020\/02\/18\/vat-council-adopts-simplified-rules-for-small-businesses\/\">simplified VAT rules for SMEs<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your business supplies a B2C digital service to an EU consumer you can pay EU VAT in one of two ways:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Register for VAT in each EU member state where you supply digital services to consumers<\/li>\n\n\n\n<li>Register for the OSS <a href=\"https:\/\/www.gov.uk\/guidance\/vat-place-of-supply-of-services-notice-741a#sec16\" target=\"_blank\" rel=\"noreferrer noopener\">(One-Stop Shop) scheme<\/a> in an EU country of your choice.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"to\">How to determine your consumer&#8217;s location<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The location of your consumer is determined by where the consumer usually lives, for example, for a UK expat living in France the location would be France.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You must get and keep evidence to prove which country your consumer usually lives. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some examples of the types of supporting evidence that tax offices will accept:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your consumer&#8217;s billing address<\/li>\n\n\n\n<li>Your consumer&#8217;s bank details<\/li>\n\n\n\n<li>Your consumer&#8217;s SIM card country code<\/li>\n\n\n\n<li>The IP address of your consumer&#8217;s device<\/li>\n\n\n\n<li>Your consumer&#8217;s landline telephone location if the service is supplied through fixed landline<\/li>\n\n\n\n<li>Other commercially relevant information \u2013 for example, a product code which electronically links the sale to a particular location.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">To try to simplify the rules for certain digital services, you can make a presumption about the place where the supply is to be taxed, meaning you don&#8217;t need to know the country where the consumer of the digital service usually lives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC has determined the presumption rule can be applied in the following circumstances where the digital service is supplied:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>At a hotel lobby, restaurant, through a Wi-Fi hotspot, or through a telephone box or kiosk. In these cases VAT is due where those places are actually located, for example, if a French tourist purchases software on their laptop using a Wi-Fi hotspot in London, then VAT will be due in the UK.<\/li>\n\n\n\n<li>On board transport travelling between countries. In this case VAT is due in the place of departure, for example if a UK resident purchases a Wi-Fi hotspot on board a cruise ship departing Spain, then VAT will be due in Spain.<\/li>\n\n\n\n<li>Through a consumer&#8217;s landline telephone. VAT is due where the consumer&#8217;s landline is located.<\/li>\n\n\n\n<li>Through a mobile phone. In this case VAT is due according to the country code of the SIM card, for example, if a UK resident downloads an app to their smartphone while on holiday in Germany, VAT will be due in the UK.<\/li>\n\n\n\n<li>By post for viewing cards or where the digital decoder is located. In this case VAT is due where the postal address is located, for example, if a UK resident has a Sky box in their Spanish holiday home, VAT will be due in Spain.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"examples\">Examples of services supplied to EU customers<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s important to note the following examples below affect supplies by a UK business to EU customers only. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For any digital services supplied by a UK business to a UK business or consumer, the normal \u00a385,000 VAT threshold applies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Live-streamed class<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>B2B (EU business customer) &#8211; Not a digital service.<\/li>\n\n\n\n<li>B2C (EU private consumer) &#8211; Not a digital service.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Recorded class, no live content<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>B2B (EU business customer) &#8211; No UK or EU VAT obligations by UK business. Customer pays VAT by reverse-charge in their own country.<\/li>\n\n\n\n<li>B2C (EU private consumer) &#8211; VAT due in EU with no threshold. No UK VAT obligations.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">E-book downloaded automatically from website or automated email link<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>B2B (EU business customer) &#8211; No UK or EU VAT obligations by UK business. Customer pays VAT by reverse-charge in their own country.<\/li>\n\n\n\n<li>B2C (EU private consumer) &#8211; VAT due in EU with no threshold. No UK VAT obligations.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">E-book sold manually<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>B2B (EU business customer) &#8211; Not a digital service.<\/li>\n\n\n\n<li>B2C (EU private consumer) &#8211; Not a digital service.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final\">Final thoughts on digital services<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As the digital economy continues to evolve, staying informed about VAT obligations is essential for digital businesses and consumers alike. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By grasping the fundamental principles of VAT, understanding the distinctions between digital and other services, and staying up-to-date with legislative changes, you can ensure compliance as well as make informed decisions that contribute to the growth and success of your business. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Armed with this knowledge you&#8217;re now equipped to supply e-services with confidence.<\/p>\n\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness finances\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/tax\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tTax\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/vat\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tVAT\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-30564 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-business-costs tag-business-finances tag-business-performance tag-making-tax-digital-for-income-tax business_type-small-business business_type-accountants industry-construction card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/landlord-1440x810.jpg\" class=\"card-post__image\" alt=\"A landlord outside some properties he owns\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/landlord-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/landlord-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/landlord-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-25T11:09:14+01:00\">25 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/private-landlords-2026-need-to-know-changes\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tNew legal requirements for private landlords in 2026 and beyond\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tIf you let property as a private individual then there&#8217;s been a handful of key changes in 2026\u2014plus more on the horizon. Here&#8217;s what you need to know.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-30495 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-cafe tag-retail tag-tax tag-vat business_type-small-business business_type-medium-sized-business industry-entertainment industry-food-beverage industry-travel-hospitality\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/great-british-summer-savings-vat-reduction-need-to-know\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1355237717-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1355237717-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1355237717-768x405.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1355237717.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-23T11:01:18+01:00\">23 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tSummer VAT cut 2026: What family-facing businesses need to know\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-15795 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accountant-accounting tag-accountant-automation tag-brexit-business tag-business-finances business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-account-reconciliation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-684x384.jpg\" class=\"card-post__image\" alt=\"man in office\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T15:28:18+01:00\">2 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tAccount reconciliation: What it is and best practices\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-30283 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-business-finances tag-financial-education business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/strategic-budgeting\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-768x478.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-1300x810.jpg 1300w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-27T15:12:53+01:00\">27 May, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tStrategic budgeting explained: the finance team&#8217;s role in long-term planning\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-30270 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-business-finances tag-reporting business_type-small-business business_type-medium-sized-business industry-saas\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/saas-revenue-recognition\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1488918938-684x384.jpg\" class=\"card-post__image\" alt=\"A man using a computer and protecting himself from phishing\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1488918938-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1488918938-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1488918938-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-27T12:11:12+01:00\">27 May, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">14 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tA guide to SaaS revenue recognition with examples\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>We&#8217;ve created this in-depth guide so you can easily find out how your business is affected by the VAT rules for digital services.<\/p>\n","protected":false},"author":1233,"featured_media":11667,"menu_order":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[6],"tags":[135,27,28],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,74,75],"imagine_tag":[109],"coauthors":[372],"class_list":["post-16811","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-business-finances","tag-tax","tag-vat","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Esther Cooke","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1313439810.jpg","imagine_tags":{"109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/16811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/1233"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=16811"}],"version-history":[{"count":1,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/16811\/revisions"}],"predecessor-version":[{"id":31204,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/16811\/revisions\/31204"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/11667"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=16811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=16811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=16811"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=16811"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=16811"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=16811"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=16811"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=16811"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=16811"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=16811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}