VAT Moss Overview

VAT MOSS stands for Mini One Stop Shop and affects digital services business providing services to consumers (B2C).  VAT MOSS means that when a business provides digital services to consumers, that business is responsible for charging VAT on the sale at the VAT rate than the buyer lives in.  So once you have established that your digital business falls under the VAT MOSS rules, the next step is to get registered and start reporting to HMRC.

Your VAT MOSS Registration Options

Under VAT MOSS there are actually two ways to register your business and start collecting taxes:

  1. Register for VAT in each of the countries you supply digital services to and submit individual VAT returns and payments to each, in accordance with each countries rules;
  2. Register with HMRC for VAT MOSS, where you are required to submit a single quarterly VAT return and payment. HMRC will then distribute it to each the countries you have sold your services to.

Generally speaking option number two is the simpler way to manage taxes in small and micro businesses and it is this one I will go into in this blog.

Next: How to Register for VAT MOSS >>

Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.