After Brexit, it will no longer be possible to use the UK’s VAT Mini One Stop Shop (MOSS) service to declare sales and pay VAT due in EU member states. This is because the MOSS system currently operated by the UK, which UK businesses use, is an EU system. It was set up to simplify VAT reporting and collection for sellers of digital services throughout the EU. Therefore, once the UK leaves the EU it will no longer be able to offer such services because it will not be a Member State and hence privy to using the scheme.
According to the guidance (which can be found here), the final return period for the UK’s VAT MOSS system will be the period ending 31 December 2019. Only sales made before Brexit should be included in that final return.
For those affected, the UK’s VAT MOSS system can be used to do the following:
- Submit your final return by 20 January 2020
- Amend your final return until 14 February 2020
- Update your registration details until 14 February 2020
- View previous returns
If businesses continue to make supplies of digital services to EU customers post-Brexit and have to account for VAT they will need to register for either:
- VAT MOSS in any other EU member state; or
- VAT in each EU member state where sell digital services to consumers
If you think you may be affected by these changes, please contact one of our VAT experts. They can advise on the best course of action for your business.