VAT Mini One Stop Shop (MOSS)

If you run a business that provides online services, you may have come across the term VAT MOSS. VAT MOSS is a way of paying VAT if your business supplies certain digital services to other EU countries.

A change in the law that was brought in on 1 January 2015 means that you now have to pay VAT based on the country where the customer bought your product, not the country the seller is based in. VAT MOSS was introduced so that UK sellers could just pay VAT to HMRC, instead of having to register for VAT in every EU country.

The change to VAT was brought in to stop big corporations from reaping the benefits of setting up in countries with very low VAT, like Luxembourg, but because of the way the way the law is worded, certain small businesses were swept up in the net.

The law covers telecommunications, broadcasting, and e-services that are sold direct to consumers (rather than to other businesses). Most small businesses are not likely to be selling broadband to the French, but if any of your products come in digital form and could be purchased by someone in the EU, then you might need to register for VAT MOSS.

Registration for MOSS

Before you can register for MOSS, you will need to be UK VAT registered. You will then add this service to your online VAT account.

You need to register for VAT MOSS within ten days of making your first digital sale to someone outside of the UK. Once you’re registered, you then need to pay your VAT MOSS quarterly by the following dates:

  • 20 April for the quarter ending 31 March

  • 20 July for the quarter ending 30 June

  • 20 October for the quarter ending 30 September

  • 20 January for the quarter ending 31 December

MOSS after Brexit

MOSS will change post Brexit. We won’t know for certain what those changes will be until the government announces them, but we’ll update this page as soon as we learn more. As MOSS was introduced as a simplification, you may be required to VAT register in each member state going forwards in which case 4 Eyes Ltd international network and our EU VAT coordination service are likely to be helpful.