Industry guidance in the event of a ‘no deal’ Brexit scenario

By February 4, 2019 Press Releases

TIGA wrote to Mel Stride MP, the Financial Secretary to the Treasury and Paymaster General, calling for guidance on the distribution of video games in the event of a ‘no deal’ Brexit scenario.

TIGA asked the Minister to provide clarification over whether video games are at risk of tariffs or other barriers being introduced in the event of a ‘no deal’ scenario.

In response to TIGA’s letter, Mel Stride MP offered the following guidance:

‘Digital sales of video games via online platforms or marketplaces are considered a supply of service, as opposed to a supply of goods. Therefore, such sales are currently not subject to UK customs tariffs when supplied to ‘Rest of World’ countries.

‘For VAT on services to consumers outside of the UK, the current ‘place of supply’ rules determine which country UK businesses will need to account for VAT on their supply. In the unlikely event of a no deal scenario, the technical notice ‘VAT for business if there’s no Brexit deal’ published on 23 August 2018, confirms that “the main VAT ‘place of supply’ rules will remain the same for UK businesses…These rules are in line with international standards set out by the Organisation for Economic Co-operation and Development (OECD), guidelines can be found on the OECD website.”’

Additional guidance for UK businesses registered for VAT Mini One Stop Shop (MOSS) was also provided by the Minister:

‘If a UK business is registered for MOSS, additional charges may apply and further guidance on these changed can be found in the aforementioned VAT technical note.’

VAT MOSS is a way of paying VAT on supplies of certain digital services if either:

  • you are a UK business who makes supplies to consumers in other EU member states
  • your business is based outside the EU and you make supplies to EU consumers


More information on VAT rules for UK businesses trading with EU countries in the event of ‘no deal’ Brexit scenario can be found here.

More information on VAT MOSS can be found here.


We use cookies on our site to track activity and visitor numbers - please help us by allowing us to use them on your visit.