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2015 EU VAT MOSS changes for digital services

2015 sees the introduction of new EU VAT legislation for businesses supplying digital services such as e-books, software, web services and telecommunications (just to name a few) to EU consumers. The good news is that the potential extra admin has been scrapped.

This legislation means that any consumer who purchases digital services off any business within the UK, must pay the VAT rate applicable within their own EU country and not that applicable in the UK. Therefore UK businesses supplying digital services to EU countries would normally be required to register for VAT in each country in which it provides such services.

For UK businesses who supply EU consumers with digital services there is the option of the new EU VAT MOSS (Mini-One-Stop-Shop) legislation.

The new EU VAT MOSS scheme will save businesses time by NOT asking them to register for VAT in every single country it supplies to but allowing them to make a single Return to HMRC quarterly made-up to March, June, September and December (due by 20th of the following month).

This VAT MOSS Return will total everything that they have supplied to each country and apply the correct rates applicable to each member state. By doing this businesses will only be paying one VAT bill to HMRC who will then distribute it to the various EU countries based on the figures from the VAT MOSS Return.

To use EU VAT MOSS businesses must register by the 10th day of the month following their first digital services supply. So, for example, if they make supplies during January 2015 and want to use the scheme, they must register by 10th February 2015. The scheme registration will then be back-dated to 1st January.

As an extra bonus any business preparing VAT MOSS Returns will no longer need to prepare the EC Sales List previously submitted for supplies to other EU businesses.

Still confused? Visit for more information or speak to a member of the JacRox team today on 0800 020 9542.

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