Do you supply digital services broadcasting, telecommunications or e services?
(For example video on demand, downloaded apps, music downloads, gaming, e books, anti virus software or online auctions where the service is automated? (Merely communicating by email and sending attachments does not constitute Digital Services)
If so, MOSS may affect you.(source HMRC)
MOSS affects a specialist area where businesses are selling electronically supplied services, such as e-books and magazines, apps, computer software and music, to private customers in other EU countries.
From this month (January 2015) HMRC have set up the mini one stop shop rules known as MOSS, to avoid the requirement for suppliers to account for VAT in the EU member state where each customer is located.
HMRC have adopted the MOSS scheme under which UK service providers register to use a special web portal which enables them to account for VAT due in other EU member states by submitting a single return to HMRC.
There has been a high profile campaign by small businesses which has resulted in HMRC now agreeing that small businesses trading below the UK VAT threshold may set up a MOSS registration to cover their EU sales only without having to register and account for VAT on their UK sales in addition.
This is on the condition that the business is able to show they can differentiate between UK and EU supplies.
Robert Ellis comments :
“This is a complicated area but please bear in mind that although you might think that as your turnover is beneath the VAT registration threshold of £81,000 you do not need to register for VAT you do.”
“You need to comply with these new rules if you are supplying electronically supplied services and speak directly to the VAT section of HMRC.”