Register for and use the VAT Mini One Stop Shop

01 October, 2014

If your business has supplied digital services to consumers in the EU, you can register for HM Revenue and Customs’ (HMRC’s) VAT MOSS scheme if your business is:

based in the UK (union VAT MOSS scheme)
a non-EU businesses (non-union VAT MOSS scheme)

You can submit a single calendar quarterly return and VAT payment to HMRC, who will send the appropriate information and payment to each relevant member state’s tax authority.

Generally, a digital service will include broadcasting, telecommunications and e-services.

How to register

From 20 October 2014, you’ll be able to register for the VAT MOSS scheme using HMRC’s online services.

If you already have an online account you can l og into HMRC Online Services and add VAT MOSS to the services you can use. If you’re registered for VAT in the UK, use your Government Gateway credentials for that VAT business to log into the online service.

If you don’t have an online account you can register for VAT MOSS and enrol for the online service at the same time.

VAT groups

Only one member of the VAT group (normally the representative member) can register for VAT MOSS using its existing VAT registration number.

If a member of the VAT group has (or will have) a fixed establishment in another member state, the supplies from that fixed establishment can’t be declared on the group’s VAT MOSS return.

How to account for VAT on digital supplies

Once you’ve registered, from 1 January 2015 you must use the scheme to account for VAT on all your supply of digital services to EU consumers. But you can’t use it to report supplies to consumers in the same member state as your business.

You’ll be able to partially complete, save and submit your VAT MOSS return online. If you have multiple entries you’ll be able to upload your data using an Open Document Format spreadsheet that will be published online.

If you don’t make any digital supplies to any EU consumers in a quarter, you must submit a ‘nil return’.

Correcting your return

If you need to make an adjustment to your VAT MOSS return you must make a correction to the original return, using the online service. You can do this up to 3 years and 20 days after the end of the quarter.

VAT on E-Service Scheme (VoES)

If you currently use the VoES scheme, you’ll need to register for the non-union VAT MOSS scheme. The UK will continue to run VoES for a limited period of time after the 1 January 2015 so you can submit a final return for the tax period ending 31 December 2014 and make amendments to declarations that you’ve already sent under the VoES scheme.

Deadlines

You must submit your return before:

20 April – for returns covering 1 January to 31 March
20 July – for returns covering 1 April to 30 June
20 October – for returns covering 1 July to 30 September
20 January – for returns covering 1 October to 31 December

You won’t be able to submit your VAT MOSS return before the end of the return reporting period.

Pay your VAT MOSS bill

You should pay your VAT MOSS bill either at the same time as submitting your return or before the due date of the return. You should quote the payment reference number provided by the online service when you make your payment. HMRC will send you an electronic reminder 10 days after the payment was due if you’ve not paid the full amount. Further guidance on paying your VAT MOSS bill will be published by the end of 2014.

Records you need to keep

You must keep evidence to prove where the place of supply is. You can read more detailed guidance about how many pieces of evidence you’ll need to keep.

You must keep VAT MOSS records for a period of 10 years from 31 December of the year during which the transaction was carried out.

Compliance checks

HMRC may conduct checks on your business to make sure you’re following the VAT MOSS rules and keeping appropriate records. If you consistently don’t comply with the rules for the scheme, HMRC may exclude you from using the scheme. You’ll be sent a message through the online service, and you won’t be able to use the scheme anywhere in the EU for up to 2 years.

VAT MOSS de-registration

The VAT MOSS scheme is optional. If you decide to voluntarily de-register from the scheme you’ll need to tell HMRC at least 15 days before the end of the calendar quarter in which you intend to stop using the scheme. For example, if you want to de-register from 1 July, you must tell HMRC before the 15 June. You can do this using the online service. Once you’ve de-registered from the scheme you won’t be allowed to rejoin that same scheme in any member state for 2 calendar quarters (normally starting after the first day of the next.