VAT on selling elearning courses

May 21, 2021

I have reached the threshold for VAT registration for selling eLearning distance courses (no online instructor just material to read and questions to answer - so classed as a digital service). I have a website where folk can simply register and pay for the course online and start instantly. I have people signing up from all around the world. Can anyone help with VAT advice on how to charge overseas customers. I understand all about VAT in the UK and that business and individuals have to pay VAT- it is the situation abroad that confuses me. My accountant says I just need to split the overseas customers  into two types - those that are businesses = no vat added and those who are individuals = add vat. However I am not sure it is as simple as that? I have been reading about MOSS schemes and having to register in each country etc and I am so lost with it all. 

I currently use paypal which doesn't allow me to differentiate customers in this way for an automatic payments (ie add tax or not).  So does anyone have a automatic payment process for their elearning courses that can calculate whether to add VAT or not from a payment process app. Desperately trying to find a similar company who can share with me their experience of this and a solution! 

I am dependant on my current LMS for the payment process they only use PayPal. So once I become VAT registered I can no longer offer automatic payments! Anyone have a LMS who have a payment process that can deal with adding VAT or not? 

Please help if you can. 

 

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