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The VAT MOSS Return

As you may have already read elsewhere on the internet, the VAT Mini One Stop Shop (MOSS) return is being introduced in 2015 as a way of “simplifying” the reporting of sales of digital services (e-services) to non-businesses in other EC member states. This is required due to the change in the place of supply (POS) rules which takes effect 1 January 2015 for sales to non-business customers (B2C sales) in other EC member states.

The place of supply rules for sales to businesses (B2B) do not change.

The main change for B2C sales is that you will have to charge VAT using the appropriate VAT rate in each state and, as you can see below, you will need to report the figures for each EC member state to which you made B2C sales in the quarter.

The first VAT MOSS return will be due in April 2015 and will be for the quarter 1 January 2015 to 31 March 2015. The submission and payment deadline is 20 April 2015. The VAT MOSS returns are due each quarter.

VAT MOSS return periods and deadlines

Quarter EndedFiling deadlinePayment deadline
31 March 20 April 20 April
30 June 20 July 20 July
30 September 20 October 20 October
31 December 20 January 20 January

For businesses which do not have VAT quarters ending the same as the VAT MOSS return dates this may cause additional administrative issues as many small/micro businesses do their book keeping quarterly in line with the VAT return dates.

HMRC have not yet released the format of the VAT MOSS return, but it is shown in the EC guidance published in October 2013 (available here as a pdf).

To help you prepare, I’ve summarised the return information below for UK businesses making B2C sales of e-services to other EC member states.

As you can see, Part 1 is general information. However, Part 2 must be completed for each EC state to which you made B2C sales in the quarter.

There are 27 EC states, with differing VAT rates as shown here on our website. The table will be updated to show the relevant VAT rate to use for digital services as some states have reduced rates for ebooks etc.

If there is a change in a state’s VAT rate part way through a tax period you will need to record separate entries for that state at the before and after VAT rate (for example, the VAT rate for Italy is planned to rise in May 2015 from 22% to 24%). HMRC have not yet confirmed how they will advise UK businesses on each change to the VAT rate in other EC states.

The Member State of consumption (MSC) is the EC state in which the customer belongs.

The Mini One Stop Shop (MOSS) return details.

Part 1: General information

Box number  
1 VAT No.
2 VAT period
2a Start date and end date of period
3 Currency

Part 2: For each Member State of consumption in which VAT is due

Box number  
4.1 Country code of the Member State of consumption
5.1 Standard VAT rate in the Member State of consumption
6.1 Reduced VAT rate in the Member State of consumption
7.1 Taxable amount at standard rate
8.1 VAT amount at standard rate
9.1 Taxable amount at reduced rate
10.1 VAT amount at reduced rate
11.1 Total VAT amount payable

If you don’t make any B2C digital supplies to any EC states in a quarter, you must submit a ‘nil return’.

This guide updated 17-Dec-2014

VAT Flat Rate Percentages

HRBS can help you with your flat rate VAT accounting

At HRBS we have many clients on the flat rate VAT scheme and can help you set up your accounting system to make the flat rate VAT return a breeze to complete.
Did you know that a 1% reduction is available off the flat rate percentages in your first year of VAT registration?
Click here to read the rest of this guide (VAT Flat Rate Percentages)

EC Sales List (ECSL) for services supplied to other EU member states guide to the EC sales list for services to other EU states EC Sales List (ECSL) for services supplied to other EU member statesAs of 1 January 2010, the requirement to report to HMRC the value of sales to other EU member states was extended to include services whereas it previously only applied to the sale of goods.

The ECSL rules applies to all VAT-registered businesses in the UK who supply goods and/or services to a VAT-registered customer in another EU country.

The ECSL is a statistical return, usually submitted quarterly, used by the UK government to prepare intra-EU sales figures.

It is also used by the tax authorities in other EU countries to check that the businesses on your ECSL are dealing with the VAT correctly.
Click here to read the rest of this guide (EC Sales List (ECSL) for services supplied to other EU member states)

VAT for affiliate marketeers

vat for affiliate marketeers VAT for affiliate marketeers I regularly receive enquiries from affiliates who are confused as to how VAT affects their business. In particular they need to know what has to be taken into account when looking at whether or not they need to be VAT registered.

The VAT rules as they apply to UK affiliate marketeers are quite complicated and not only do you have to split your commission income into several types, you also need to keep track of costs of services supplied to you from businesses located outside the UK.

As of 1 January 2010 (for VAT purposes only), the vast majority of business to business (B2B) services are deemed to be received where the customer belongs and the customer has to account for the VAT.
Click here to read the rest of this guide (VAT for affiliate marketeers)

Adwords, Microsoft Adcenter, Facebook And VAT Registration

Do you need to register for VAT?

vat return Adwords, Microsoft Adcenter, Facebook And VAT RegistrationTo find out whether you need to be VAT registered you need to calculate your VATable supplies each month and compare the total for the last 12 months with the VAT registration threshold.

For this calculation, non UK advertising expenditure such as Google Adwords, Facebook, Twitter and Microsoft/Bing should be added onto your turnover in working out your VATable supplies.

This is because, for VAT purposes, advertising from non UK suppliers comes under the Reverse Charge rules, and VAT is accounted for by the recipient of the services (i.e. the customer) in their VAT return.

Click here to read the rest of this guide (Adwords, Microsoft Adcenter, Facebook And VAT Registration)

Flat Rate VAT For Affiliate Marketing guide to the flat rate vat scheme for affiliate marketing Flat Rate VAT For Affiliate MarketingUsing the UK flat rate VAT scheme is quite often beneficial for affiliate marketeers. Many in the affiliate marketing sector have low overheads and in particular, small amounts of input tax (VAT charged on purchases).

Under the flat rate scheme, input tax is not reclaimable and the VAT paid to HMRC is calculated as a percentage of gross sales. Gross sales are net sales + the VAT charged to the networks.
Click here to read the rest of this guide (Flat Rate VAT For Affiliate Marketing)

Flat rate VAT scheme

flat rate vat scheme Flat rate VAT schemeIs the VAT flat rate scheme right for you?
Whether or not the VAT flat rate scheme is beneficial for you would depend upon the administration costs saving due to its simplicity weighed against the fact that in most circumstances, VAT on purchases (“input VAT”) cannot be reclaimed.

Use our handy calculator

We have created a handy Excel calculator for you to quickly work out whether you would be better off joining the scheme. Some businesses, in particular those with exempt supplies, may be worse off under the scheme.
Click here to read the rest of this guide (Flat rate VAT scheme)