Value Added Tax Act 1994 Schedule 3BA Part 1

Introduction to the Union scheme

Schedule 3BA Part 1 introduces the Union scheme, a special VAT accounting arrangement for businesses supplying certain digital and telecommunications services to non-business customers in other countries, and defines the key term "scheme services".

• The Union scheme is a special VAT accounting scheme introduced from 1 January 2015 for suppliers of digital and telecommunications services to non-business customers.
• The scheme applies to businesses established in Member States that supply broadcasting, telecommunications or electronically supplied services to non-business customers in other Member States.
• "Scheme services" covers three categories: electronically supplied services, broadcasting services, and telecommunication services.
• The scheme simplifies VAT compliance by providing a single accounting mechanism rather than requiring registration in every country where customers are located.