VAT Mini One Stop Shop
- 18th January 2018
- Posted by: admin
- Category: News
It is over three years since the VAT applied to the sale of business to consumer (B2C) digital services in the EU changed. The place of supply rules are determined by the location of the customer who receives the service rather than the location of the supplier.
The rule change did not affect business to business (B2B) sales.
To accommodate the need for businesses to register for VAT in other Member States, a Mini One Stop Shop (MOSS) was introduced alongside the scheme in 2015. The MOSS scheme is an electronic system that allows businesses to register in one EU member state
and submit a single VAT return and payment each quarter for all their cross border supplies of digital services.
There are two MOSS schemes, one for businesses established within the EU (called the Union VAT MOSS) and one for businesses that are not established in the EU (called the Non-Union VAT MOSS). The two schemes work in an almost identical way.
VAT registered businesses can make changes to their VAT MOSS Return up to 3 years and 20 days after the end of the relevant period. If the change results in monies being due to the business by one or more EU member states a refund must be made. Businesses
must ensure that their bank details held within the MOSS system are up to date. HMRC has recently published amended guidance on using the MOSS which includes a new ‘Get Help’ section.
Source: New feed