Social Network Membership Subscription

Legal Issue:

We manage an Internet Social Network service for a company in Belgrade, (Serbia). The service is a Social Network where we charge an annual membership fee to a user to use the social network. The strict definition of the payment is a "Membership Subscription" to the social network and could be a monthly or yearly subscription. No physical goods are supplied, this is an entirely electronic service. The raw Social Network in turn is a service that we contract from a supplier in the UK and their service is hosted on servers in the UK. We have customised this network and own it in terms of content and membership and pay the UK company for the monthly hosting of it. We would like to know if there are any VAT considerations that we are accountable for in terms of the "Subscription Membership Fee" we charge in relation to UK VAT or European VAT laws? Kind Regards Nebojsa
==========================================