Tax Advice

Are you ready for MOSS

01 Dec 2014

There is a massive change about to take place for VAT registered businesses who supply cross border EC supplies of digital services to consumers.

From the 1st January 2015 businesses supplying broadcasting, telecommunications and electronically supplied services will be affected as the place of supply will now be regarded as where the supply is consumed. This means that if you are trading from, for example, Luxemburg to the UK as you have a UK consumer the UK is the country you are indebted to in terms of tax on the supply.

Now we know what you must be thinking, within these new rules businesses will have to register in multiple countries and file multiple returns but the authorities are one step ahead. To simplify the transition for affected companies instead of registering in numerous jurisdictions you can register for the mini one stop shop aka MOSS.

Under the old rules these new regulations would mean that you would potentially have to file 28 returns (the maximum number of EC countries) but with MOSS you file just one return with all of the information.

Any company selling electronically supplied services will need to join the MOSS scheme if they are over the VAT threshold in their country.

Companies defined as selling electronically supplied services are those delivering services or supplies over the internet with the nature of the supply rendering them automated and involving minimal human interaction for example Apps, e-books and electronic template documents. Services explicitly not included are tickets booked online, car hire booked online and distant learning via webinars.

If your company is VAT registered, makes electronic supplies and supplies consumers in EC countries then you must register 10 days after the first month you start making relevant supplies.

It is essential to get MOSS returns right as once submitted any mistakes cannot be adjusted on the next return instead the incorrect return must be amended with and those corrections must be made within 3 years.

The accounting burden will increase significantly. Many EC member states will now require sales invoices to be issued to the consumer for every supply made; The EC countries may fine your company if these requirements are not met. Spain for example could fine 150 Euros for every invoice not issued.

Keir Wright-Whyte


Managing Director

0207 043 4000

About the author

Originally graduating with a degree in geography from Edinburgh University, Keir claims that he was then tricked into becoming an accountant by one of the UK's top 5 accountancy practices.The deception extended to the usual training in audit and associated activities.

Keir subsequently worked in a number of advisory roles with clients including in the energy trading, pharmaceuticals and financial services sectors.

He loves working at Accounts & Legal because of the variety of work and clients, the excellent team ethos and morale, the importance placed on genuinely helping and being useful for clients and because he believes what he does matters to clients and helps the firm.

Keir's primary role is to ensure that new clients with complex businesses or needs are on-boarded in the best way and he is a "trouble shooter" both for clients and where complex issues arise internally. He also helps the accounting teams strive to improve what we do for clients, whether processes or services.

When not debiting or crediting, Keir has a penchant for fixing old buildings, skiing, surfing and cycling.


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