Using the VAT MOSS scheme? Accountz is here to help!

January 19 2015, 0 Comments


What is the VAT MOSS scheme?

The new MOSS scheme has been created to ‘help’ small businesses, so that they do not have to become VAT registered with every country in the EU.

Hence the name Mini One Stop Shop (MOSS).

Unfortunately, in practice, it has created a lot of unwelcome complications. Such as recording the location of the customer and paying the VAT to the correct country within the EU.

This guide has been designed to help our customers and indeed everyone affected by the changes, which came in to action on the 1st of January 2015.

The good news is anyone affected by VAT MOSS can use Accountz to help them easily deal with any complications as of today!


How do I record VAT MOSS with Accountz?

Simply enter the VAT code you use in the software to Standard or Reduced MOSS, this will allow you to select the country the sale came from and will automatically calculate the correct VAT for that sale. You will then receive an in depth report at the end of your VAT period.

This will give you the correct figures for your VAT MOSS report for submission to HMRC.

See below for more information on VAT MOSS.


Does VAT MOSS affect me?

The changes apply to anyone who provides e-services, broadcasting or telecommunications to consumers within the EU.

For business to consumer transactions only.

For instance our Business services are unaffected by the VAT MOSS scheme, however our Home services are!

This includes games & software designers etc etc.

The new changes only affect companies who sell a digital download through an automated system.

If there is any manual interference by the company, the new scheme does not apply to you.

Companies selling tangible assets through an online payment system i.e. gig tickets are also exempt.

(please check with HMRC)


What do I have to do to be VAT MOSS compliant?

  1. You must register with the MOSS scheme on the HMRC website.
  1. You must record two pieces of evidence to mark a consumer’s location, offers the following suggestions:

The consumers billing address, area code of mobile phone or landline, IP address or their bank details.

(There are some exceptions to this rule: see presumptions below)


What are the presumptions I can make when using VAT MOSS?

The powers that be, thankfully, have allowed anyone opting for the one stop shop to make presumptions.

If you provide the services through one of the following means you can follow the corresponding guidelines:

  1. Service provided through a telephone box, telephone kiosk, Wi-Fi hot spot, internet cafe, restaurant or hotel lobby. (presumption: consumer location is the place where the service is provided)
  2. Service provided on board transport travelling between separate EU countries, boat or train. (presumption: consumer location is the place of departure for the journey)
  3. Service provided through individual consumers landline. (presumption: location is where landline is located)
  4. Service provided through a mobile phone. (presumption: consumer location is the country code of the SIM card)
  5. Service provided through a decoder. (presumption: consumer location is the postal address where the decoder is sent or installed)

If your circumstances apply to one of the above presumptions, you’re only required to retain evidence showing the location as instructed above.

Please see the following link it was very helpful to us when we were making Accountz VAT MOSS compliant!

HMRCs guide to VAT MOSS