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Brexit and VAT: Registering for the non-union MOSS

20 January: UK businesses that have supplied eligible digital and telecommunication services into the EU since 1 January 2021 have three weeks to apply for the non-union VAT mini one stop shop. ICAEW’s Tax Faculty provides an overview.

10 February 2021 is the deadline to register for the non-union mini one stop shop (MOSS) scheme for any UK business making relevant supplies into the EU during January 2021.

The non-union MOSS enables businesses with no EU establishments to account for VAT due in multiple EU countries in just one country.

The optional scheme is open to businesses that supply telecommunication, broadcasting and digital services (such as supplying software, online gaming and distance learning) to non-business customers.

Businesses wanting to use the non-union MOSS must first choose an EU country in which to register for the scheme. This will be where VAT returns are submitted and tax paid.

For many businesses one of the key considerations in choosing a registration country will be that English is widely spoken. As these countries may be experiencing capacity issues owing to the pandemic, the Tax Faculty advises that it is important that businesses complete registration as soon as possible and do not wait for the deadline.

Under the scheme, businesses must record for each country the total sales made and VAT collected in that country, along with the rate of VAT that has been applied. Note that the rate of VAT depends on the rate that applies in the EU country where supplies are made and not the EU country of registration.

Eligible businesses have until the 10th day of the month after relevant sales are first made in an EU country to register for the non-union MOSS. For sales made at any time in January 2021, this is 10 February 2021.