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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