Breakfast Quay

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20 February, 2019

Changes to our VAT status

Breakfast Quay is a very small operation: it is the trading name used for audio and metadata software by a two-person company, Particular Programs Ltd, with zero full-time employees. Our turnover is tiny and we're content with that.

In the UK, companies with turnovers below a certain threshold are not required to register for or charge VAT (value-added tax or sales tax). For the first few years of our existence, up to the end of 2014, we were able to take advantage of that threshold to simplify our charging and tax. In January 2015 this changed, with the introduction of what is known as the VAT MOSS system for charging VAT on digital services across the EU. This system had no lower threshold, so we had to register for it, and therefore also for UK VAT.

However, as of January 2019, the VAT MOSS system has been changed to introduce a low threshold below which a company may choose to report and pay VAT within their own country even on overseas sales within the EU. As a consequence we are now free to return to operating below the UK VAT registration threshold, and so we will no longer be charging VAT on sales.