The Pesky VAT man!

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VAT MOSS, Mini One Stop Shop

If you’re selling digital solutions online to the EU you need to understand your VAT obligations!

Allsquare can help you fully understand the implications of VAT MOSS, Mini One Stop Shop and the changes to the rules governing cross-border supplies to non-business customers of digital services such as e-products, telecoms and broadcasting. They came into force on January 1, 2015. Our simple accounting solutions can ensure that you remain in control and have the expert guidance required to ensure you are always operating within the law.

Any business involved with the B2C supply of anything from games and music to software and web-hosting services must be aware of MOSS and the associated regulations. The most fundamental change that has occurred is that now all VAT has to be accounted for within the member state in which the client usually lives and not in the business provider’s base country. MOSS can play a vital part in this process.

The revised regulations aim to prevent companies from positioning themselves in an EU member state benefiting from a lower rate of VAT than that implemented in the UK in order to gain an unfair advantage when competing against other businesses based in Britain.

Simply utilising the internet or other means of electronic communication in order to enable trading or communication does not necessarily count as a supply of e-services. This distinction is important to ensure that your company is fully informed as to whether compliance is needed or not. Allsquare can help with this. You can also find out more about MOSS by visiting this site.

There are many businesses that will be affected by the 2015 changes, even if e-services are supplied by an automatic method. Your company may use a simple ‘buy-now’ automatic payment system and ultimately send out digital content automatically, but you would still need to comply with the latest regulations. The distinction can sometimes be difficult to determine, but the expert team at Allsquare is on hand to offer the advice that you need.

MOSS means that if you are affected by these rules, you do not have to register your business in each EU member state where you do business. You will need to have a valid UK VAT number to register, but this will not affect your UK registration threshold. You cannot use MOSS if your business’s taxable turnover is above the UK VAT threshold, which is currently set at £81,000. Allsquare can help you understand all of this and more, with a service that is tailored to the needs of both you and your business. Why not get in touch today? Call us on 0131 343 1510 or email