Does your business supply telecommunications, broadcasting and electronically supplied services? Find out how MOSS affects you.

Written by B20 Ltd on 02 March 2015.

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Do you supply these services across the EU? Then surely you’ll be aware of the ‘mini one stop shop’, or MOSS as it’s generally known.

As of 1 January 2015, the taxation laws around the ‘place of supply’ of telecommunications, broadcasting and electronically supplied services (TBES) changed to the country where the customer actually lives rather than where the supplier belongs. This means that as a supplier you will either need to register for VAT in every Member State where TBES supplies are made (up to 27 separate VAT registrations) or make use of the EU-wide accounting system MOSS.

What does this include?

Well, this includes electronic services supplied to a customer, for example images, digitised files, ebooks, online magazines, music, films or games. It does not include any training facilitation when the internet is used by a live tutor, including education or professional courses where the content is delivered online and it doesn’t include the supply of goods where ordering is placed online.
There are workarounds on some of these items when a seller sends pre-populated emails using templates for example, so do your research!

How to register

There are two separate MOSS schemes. One for non-EU based suppliers and one for EU based suppliers. Registration for both schemes were available as of October 2014, so if you haven’t already registered, do. Registration is voluntary – it won’t come to you. If you don’t register you will be required to register for VAT in every Member State that you make a sale, irrespective of the value of that sale.

MOSS Returns

MOSS returns are to be submitted on a calendar quarter basis and must be submitted online within 20 days of the quarter end. A MOSS return will not be required in quarters where no TBES services have been supplied. In the UK, your MOSS return will be in GBP, and all other EU currencies will be converted to GBP using the European Central Bank exchange rate. Once your MOSS return is completed, the final VAT amount is calculated and payment is due by the 20th of the following month.

What to do next

These are significant changes, so if you haven’t made arrangements, now is the time. B20 can help. Contact us for further information.
You can also visit the HMRC website for guidance https://www.gov.uk/government/publications/vat-supplying-digital-services-to-private-consumers/vat-businesses-supplying-digital-services-to-private-consumers

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