Supply of Digital Services and VAT Mini One Stop Shop (MOSS) Guidance

Supply of Digital Services and VAT Mini One Stop Shop (MOSS) Guidance

If your business has supplied digital services to consumers in the EU, you can register for HM Revenue and Customs’ (HMRC’s) VAT MOSS scheme if your business is:

• based in the UK (union VAT MOSS scheme)

• a non-EU businesses (non-union VAT MOSS scheme)

You can submit a single calendar quarterly return and VAT payment to HMRC, who will send the appropriate information and payment to each relevant member state’s tax authority.


Currently, the place of taxation for digital services [e.g. Video on demand, Downloaded applications (or ‘apps’), Music downloads, Gaming, E-books, Anti-virus software is determined by the location of the supplier. However, from 1 January 2015, the place of taxation will be determined by the location of the consumer. This is a significant change for all digital services supplied to non-business consumers. It does not affect suppliers to other registered-EU-business.


In order to work out the country in which VAT due must be paid, you will need to keep additional customer information that was not required before.


To make this as straight forward as possible, the EU Member States discussed and agreed what a business needs to do; and the records it must keep.


If you supply consumers through an online store or gateway, and the online store or gateway is acting in its own name, then the store / gateway will normally be considered to be supplying the consumer. This means the online store or gateway will be responsible for declaring and paying any VAT due. You will be treated as supplying the store [and not the consumer!] thus you will be making a business to business (B2B) supply, rather than a B2C supply. If this is the case, these rule changes do not directly affect you.

Using VAT MOSS, you can account for the VAT due on your business to consumer (B2C) sales made in other EU countries by submitting a single quarterly return, and payment, to HM Revenue and Customs (HMRC). HMRC will send an electronic copy of the appropriate part of your return, and any payment, to each relevant country’s tax authority.

For more information on the subject of VAT on digital supplies, then please do get in touch on 020 73840920.

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