VAT MOSS, Digital Downloads and BREXIT: what you need to know

VAT MOSS after Brexit

Are you selling digital downloads or online services and wondering what you need to do after Brexit? If you sell to the EU you need to register for VAT moss (non union) to ensure you remain within the EU law.

What is VAT MOSS?

VAT MOSS stands for Value Added Tax Mini One Stop Shop. VAT (value added tax) is a normal requirement for businesses when they sell domestically. Normally, business must meet a threshold of sales to be required to register and charge VAT. Therefore, if you sell under £85,000 in the UK, you need not register for VAT and will not have to charge VAT.

It will surprise the vast majority of businesses who sell and deliver online to hear that they need to register for VAT MOSS Mini One Stop Shop regardless of turnover. This used to be administered in the UK on the HMRC website, but after BREXIT VAT MOSS is not available on HMRC. But that doesn’t mean VAT MOSS is gone.

For those who are selling Digital Downloads to Europe you will need to know about VAT MOSS and if you were registered for VAT MOSS before brexit then you need to find out what you need to do.

Below are the examples which are subject to EU VAT MOSS.

  • Digital Guides
  • PDF
  • Audiobooks
  • Digital Courses
  • Games which are delivered by Download
  • Logos electronically
  • Schematics
  • Videos delivered by download
  • Online delivered projects
  • and the list keeps growing

Introduced in 2015, this scheme aims to simplify VAT when selling in the EU, the alternative would be registering for VAT in each individual country. It means that you only have to pay VAT to one EU member state and not the individual EU countries. However, after Brexit HMRC has deregistered all those registered for VATMOSS. Many continue trading without complying with EU tax law! 

You still have access to VAT MOSS after Brexit but this would have to be performed via the non union VAT MOSS scheme registration and this can only happen in an EU member state. 

It aims specifically this at those who sell business to consumer in the EU. Without VAT MOSS, if someone in Germany buys your product, you would have to register for VAT in Germany and submit 12 returns in German – that is not ideal. Therefore, VAT MOSS simplifies this, so if someone in Germany buys your digital download then you would charge them German VAT, but you would record all your EU sales and VAT charged on one return, the VAT MOSS return. You would then pay the EU Member state the money so they can send it to the German tax authorities.

How to register for non-union VATMOSS

This is the tricky part. You now need to register for non union VATmoss through a member state. The obvious candidate is Ireland, why? because they speak English.

You would have to register your business with Revenue.IE and then submit VAT returns there and pay them any monies.

What information is requried to register:

  • Company Name
  • Trading Name
  • Address
  • Website URLS
  • Contacts
  • National Tax Reference Number (UTR)
  • Bank details (IBAN AND BIC)

As eCommerce specialists, we make it our business to find out what you need to do as a UK company to sell into international markets. If you have questions contact us via live chat or book a meeting on the contact page.

How do I submit and Pay VATMOSS

Luckily, VAT MOSS filing dates after Brexit have not changed:

  • 20 April for the quarter ending 31 March
  • 20 July for the quarter ending 30 June
  • 20 October for the quarter ending 30 September
  • 20 January for the quarter ending 31 December

You need to supply a list of sales including information on VAT rate and country consumer purchased from.  

The information is simple but you need to ensure that you capture the relevant information when selling digital items. Specialist providers like SendOwl, EasyDigital Downloads, Shopify and Sellfly should have downloadable reports for you to use.

Once you have completed your VAT moss return you will need to pay on the same day as the deadline for the returns themselves. It is always best practice to pay Revenue.IE once you submit the return.

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Contact us today about VAT MOSS after Brexit

We are eCommerce expert accountants and we make it our business to keep up to date with the tax rules in the UK and international markets. We continue to guide our clients through Brexit. If you have any questions or need help with VAT MOSS please contact us today.

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Free 30 Minute Consultation

Why not grab a Free 30 Minute Consultation with an Accountant, they can answer any questions you have about your e-commerce or marketplace business, guide you on tax efficiency and see if we can help you.

You Have Nothing to Lose & A Lot to Gain
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