Discuss

VAT on digital services: identify the customer and where they belong.

B2B and B2C place-of-supply rules, consumer-location evidence, platforms and billing controls for digital products.

Discuss your position
01Classify the digital supply
02Establish B2B or B2C status
03Locate the customer
04Set billing and evidence controls
01

Digital delivery is a tax classification

Automatically delivered software, media, hosting and other electronically supplied services may follow digital-service rules, while live professional input, implementation and support can require a different analysis.

  • Automated digital supply
  • Human intervention
  • Bundled support
  • Platform and reseller roles
02

Consumer location determines the route

For cross-border B2C digital services, the consumer's normal location is central. Businesses should collect consistent evidence such as billing address, IP location, bank information or other commercially relevant data.

  • Consumer presumptions
  • Two-item evidence
  • UK consumers
  • Overseas registration and scheme questions
Primary sources

Tax guidance changes. These official sources were checked on 31 August 2026.

VAT on digital services supplied to consumersVAT Notice 741A: place of supply of services

Related VAT services

VAT returns and complianceReturn preparation, review controls, Making Tax Digital records and correction processes for repeatable UK VAT compliance.International VATPlace of supply, overseas registration, imports, exports and UK market entry without false simplicity.Ecommerce VATUK VAT for direct sales, marketplaces, fulfilment stock, imports and overseas sellers.
Important

This page provides general information, not advice for a particular transaction. VAT treatment depends on the complete facts and current law.