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#VATMoss goes live from 1st January 2015 – does this impact on your business?

Accounting, Businesses, Growth, Law, Uncategorized, VAT l

MossSmall businesses trading online are up in arms about a new EU regulation, which states that from 1 January 2015, VAT on digital products will be chargeable in the place of purchase rather than place of supply in the EU.

The regulatory tweak – known as #VATMOSS – is being introduced to stop multinational corporations that trade online from diverting all their European sales through low-VAT countries, but is being predicted to hit smaller businesses in this sector hard.

UPDATE – HMR&C have provided some useful assistance which can be found at

https://www.gov.uk/government/publications/vat-supplying-digital-services-to-private-consumers

Small business owners claim that #VATMOSS (Mini One Stop Shop) is likely to hurt many UK firms selling digital services, including: ebooks, e-courses, recorded training videos, music and audio downloads.

After January 1, whenever an ebook or pdf is sold to a consumer in the EU (digital services for businesses are not covered by the new arrangement), the seller is automatically liable for VAT MOSS and must therefore also waive their UK “de minimis” threshold – and apply VAT to everything they sell, not just the digital services.

If you have any concerns regarding how this may impact on your business, please don’t hesitate to contact the team at Morrell Middleton on 01904 691141 or post@morrell-middleton.co.uk

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