Farley And Partners

VAT – Is your company ready for MOSS?

Is your company ready for MOSS?
If you sell services via the Internet to EU custome
rs, you can
now sign up to HMRC’s mini one stop shop (MOSS). Wh
at is it
and why should you use it?
Related documents – The Next Step
Details of EU B2B sales which don’t count as outsid
e the scope of VAT
B2C services.
From 1 January 2015 if your company makes business
to non-
business customer (B2C) sales of telecommunication
or e-services, e.g.
downloadable software, e-publications, etc., in the
EU it must account for VAT
in the country in which the customer lives and at t
he rate which applies there.
B2B services.
The new rules don’t apply to sales to business cus
(B2B). They continue to be outside the scope of VAT
except in a few
situations (see
The next step
VAT rates.
If you make B2C sales in just one or two other EU
countries, it
might not be too tricky to handle, but if you sell
all over the EU you will have to
deal with the tax authorities in all those countrie
s. To avoid this admin
nightmare HMRC has created the VAT mini one stop sh
op (MOSS), which
opened for business in October 2014.
How it works.
MOSS allows your company to account for VAT on a s
quarterly return solely for EU B2C sales. The MOSS
service will also include
information about any changes in EU VAT rates so th
at you can charge your
customers the right amount on their purchases.
You can choose to make VAT returns direct to each
EU country’s
tax authority, but in our view using MOSS is a bett
er option; in fact, it’s a no-
brainer. To register for MOSS just log on to your V
AT online service and
“Services you can add”
from the menu on the left. In the list which
appears scroll down and select
“Union scheme for VAT Mini One Stop Shop”
If you decide to use MOSS, you must do so for all
services you sell to EU
customers. However, those made in the UK should con
tinue to be reported on
your normal VAT return.
Register to use MOSS to account for VAT due in othe
r EU
countries on sales of e-services, e.g. online apps,
you make to
non-business customers. VAT on this type of sale ap
plies from
1 January 2015.
Contact us for further information and adv
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