Pages

Friday, 8 March 2019

VAT update

 I finally got an email about VAT Moss. It tells me what happens if we crash out on March 29.

So I will be able to do my last VAT Moss payment on April 1, but I better not make any sales on March 30 or 31st. And then I'll have to register for the non-Union scheme in an EU country. Maybe Ireland, because the speak English.

But what happens if we leave with the May deal? No-one has told me. What happens if Brexit is postponed? No-one has told me.

What they are telling me, is "get ready". How, when no-one knows what's happening?

Dear VAT MOSS user,

We are writing to tell you about changes to the UK Mini One Stop Shop (MOSS) and the actions you’ll need to take if the UK leaves the EU without a deal on 29 March 2019.

What will change?                        

The UK will no longer be a part of the VAT MOSS service. UK businesses that sell digital services after the UK has left the EU won’t be able to use the UK MOSS portal to declare VAT due in EU Member States.

The £8,818 annual threshold for cross border sales of digital services to EU consumers will no longer apply. All supplies of digital services to consumers in the EU will become liable for VAT in the consumer’s Member State.

What do I need to do?

If the UK leaves the EU on 29 March 2019, the last return you will be able to submit via the UK MOSS portal is for the period ending March 2019. You should only include sales made between 1 January 2019 and 11pm on 29 March 2019. The submission and payment deadline is the 20 April 2019. The portal will remain open until the 15 May 2019 in case you need to amend your quarter one 2019 return after submission.

Any other outstanding MOSS returns or corrections should be made via the UK MOSS portal by 29 March 2019. After this date, you will need to contact the relevant Member State concerned if you need to amend earlier returns.

If you continue to make supplies of digital services to EU consumers after the UK has left the EU then you must charge VAT at the rate of the Member State of your customer, regardless of the value of the supply, and either:

·         register for VAT in each Member State where VAT is due; or

·         register for the VAT MOSS non-Union scheme in a Member State of your choosing.

How do I register for the VAT MOSS non-Union scheme?

You can only register for the MOSS non-Union scheme after the UK has left the EU. You need to register within 10 days of the month following your first sale after the UK has left the EU as otherwise your registration will take effect from the first day of the quarter after the date you apply to register. This means that if you make a sale between 30 and 31 March 2019 then you will need to register by 10 April 2019. If you apply to register after that date, and have made sales on 30 or 31 March, then your registration will take effect from 1 July 2019 and you will become liable to register for VAT in each Member State where VAT is due for the period prior to 1 July 2019.

To allow you to register for the non-Union scheme, you will be automatically deregistered from UK MOSS with effect from 1 April 2019. You will still be able to access the system after you have been deregistered so you can submit and amend your return for the first quarter of 2019 and view previous returns.

You can find further information on registering for the MOSS non-Union scheme on the EU Commission’s webpage [ec.europa.eu](ec.europa.eu/taxation_customs/business/vat/telecommunications-broadcasting-electronic-services/content/r>
ss_en) and information on EU exit on gov.uk ‘Trading with the EU if the UK leaves without a deal’ [www.gov.uk].

Businesses can register for our email update service at: www.gov.uk/hmrc/business-support [www.gov.uk] - select ‘business help and education emails’, then ‘EU Exit’. You can use the ‘Prepare your business for the UK leaving the EU [www.gov.uk]’ tool on GOV.UK to find further guidance and support to help your business.

If you have any questions in respect of UK MOSS and EU exit, you can ask email the VAT MOSS team at:


VAT2015.contact@hmrc.gov.uk.

Yours sincerely,

The VAT MOSS Team

HM Revenue & Customs

United Kingdom

No comments:

Post a comment