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TAXguide 23/17: VAT MOSS

In TAXguide 23/17, Neil Gaskell explains the changes introduced on 1 January 2015 to the VAT rules for business to consumer supplies of digital services within the EU. Read a summary here, Tax Faculty members can download the full guide.

Page last updated

28 January 2019

TAXguide 23/17

Tax Faculty members can download this guidance in full.

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Please note that this guide was updated on 28 January 2019 to reflect changes introduced on 1 January 2019.

Overview

On 1 January 2015 there was an important change to the VAT rules for business to consumer supplies of digital services within the EU.

From that date, the place of supply to non-business customers of telecommunications, broadcasting and e-services became the country where the customer is located. UK businesses supplying digital services now have to charge and account for VAT according to the rules of each non-business customer’s member state.

To save UK businesses having to register for VAT in every EU member state where they supply to consumers, they can use the VAT Mini One Stop Shop (VAT MOSS) online service provided by HMRC. For this they must be VAT-registered in the UK.

This TAXguide provides an overview of the January 2015 changes to the VAT rules, the implications for UK businesses and how the VAT MOSS works.