A Guide to VAT MOSS

A Guide to VAT MOSS

You may have come across the term VAT MOSS if you run a company that provides services online. In this blog post, we will reveal exactly what it is, as well as details on VAT registration for MOSS.

What is VAT MOSS?

If you supply certain digital services to countries in the EU, VAT MOSS is simply a way of paying your VAT. MOSS stands for Mini One Stop Shop. It was introduced so that sellers based in the UK could simply pay VAT to HMRC, as opposed to having to register for VAT in every country they sell to in the EU.

Do you need to register for VAT MOSS?

VAT MOSS was set up in reaction to a change of law that was introduced in January 2015. This was the law that now requires you to pay VAT in the country whereby the customer purchased the item, as opposed to where you are based. This law change came about to try and make the industry fairer by eliminating the advantage big businesses were reaping by setting up in low-VAT countries. However, this resulted in certain small companies being caught in the net, hence the introduction of VAT MOSS. Therefore, if you run a small business, and you operate in e-services, broadcasting, or telecommunications, you can register for VAT MOSS.

Registration for VAT MOSS

You need to complete your registration for UK VAT first if you want to register for VAT MOSS. You will then have the option to add VAT MOSS to your HMRC account. You must register for VAT MOSS within a period of ten days from your first digital sale to anyone outside of the country. Payments are made on a quarterly basis in April, July, October, and January.

This can be a lot to take in for any small business owner, especially if you are unsure as to whether VAT MOSS will even benefit your business. This is why it is a good idea to seek professional assistance. A reputable accountancy firm will ensure you operate under the most profitable VAT scheme for your business.

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