16 Dec 2020 1:02 PM

VAT Mini One Stop Shop (VAT MOSS) is a way of paying VAT on supplies of certain digital services if either:

  • you are a UK business who makes supplies to consumers in EU member states

  • your business is based outside the UK and EU and you make supplies to UK or EU consumers

For UK businesses making cross-border supplies where the place of supply is an EU member state, there is no registration threshold and VAT is charged at the rate due in the consumer’s country.

Where a business based outside the UK or EU makes supplies of digital services to consumers in the UK or EU, the place of supply will be where the consumer is located.

VAT MOSS allows these suppliers to file one VAT MOSS return rather than filing VAT returns in every EU member state where they have a deemed place of supply.

As a result of Brexit, the UK will not longer be able to use the Union VAT MOSS service. Therefore if you are registered to use VAT MOSS before Brexit, you will be required to change your registration to one under the non-union scheme through another EU member state.

As a result of the fact that until 31 December 2020, the UK is part of the union, you CANNOT apply to the non-union scheme until January 2021, after the transition period has ended. Registration must be made within 10 days of your first sale to which VAT MOSS will apply, so you may have to do this registration quickly in January.

If you have any queries on VAT MOSS or the changes for Brexit, we can help so please get in touch.