VAT MOSS – what is it and why you should be scared?
Author: Russell SmithMay 6, 2015
As an accountant I’m used to tax changes every year, some more radical than others.
However, not even in my wildest nightmares could I have dreamt up as something as horrid and terrifying as VAT MOSS.
VAT is probably one of the most complex of taxes, but it just got a whole lot more complicated……
The deadline for signing up for VAT MOSS was 10 February 2015. It affects about 1 million businesses around the EU. Guess how many businesses signed up before the deadline?
(including my clients)
So if you want to know whether you are affected by VAT MOSS – see below….
- Do you sell to the EU?
- Do you sell digital products or digital services (no or minimal human intervention)?
- Do you sell business to consumer in the EU (if you sell to a ‘marketplace’ this could be ‘business to business’ and therefore MOSS doesn’t apply)
If the answer is yes to all 3, you have to:
- Register by 10 February 2015
- Complete VAT MOSS returns (starting with the quarter ended 31 March 2015)
- Account for the VAT on the country of the customer (not UK VAT)
Important: All this applies whether or not you are registered for VAT in the UK
As I said…….be very afraid!
If you need help with this, email me at firstname.lastname@example.org