Is It Agains the Law for Moss to Hold Offuc
Last checked: 01/10/2020
VAT on digital services (MOSS scheme)
The VAT Mini 1 Terminate Shop (MOSS) is an optional scheme that allows you to account for VAT - usually due in multiple EU countries – in only 1 EU country (In this case, the 27 Eu member states + the UK (until the end of the transition menstruum).).
If yous supply cross-border telecommunication, television and radio broadcasting, or digital services to not-taxable persons, you may be eligible for the scheme. Services covered nether the MOSS scheme include:
- website hosting
- supply of software
- access to databases
- downloading apps or music
- online gaming
- distance teaching
MOSS means you don't need to register with tax authorities in every EU country you lot sell to, instead, y'all can register for VAT, file VAT returns and make payments in one unmarried identify. You lot must apply the rules of the MOSS scheme to your customers in all EU countries that you supply to.
In that location are ii schemes running under MOSS:
- the union scheme, for businesses established in the European union or with at least ane co-operative based in an European union country
- the non-spousal relationship scheme, for businesses not established in the European union and without whatsoever branches based in the EU
Choose an option to come across which scheme could work for you.
Notation: You tin can also take reward of simplified VAT rules for low annual turnovers without the need to register with MOSS; cheque to see if you are eligible.
Your company
- has its head part established in the EU
- just has a branch (not its head office) established in the EU
- has neither its head function or whatever branches established in the Eu
Marriage scheme
Y'all can use the Marriage scheme when y'all supply the cantankerous-edge telecommunications, television and radio broadcasting, or digital services to consumers in all EU countries except:
- the European union country selected as your member state of identification
- Eu countries where your business has branches established (member states of establishment)
The EU countries where you supply services to are known as member states of consumption.
Selecting a member state of identification
You lot have to designate a fellow member state of identification. This is the EU country where your business is established (where the head part is located).
Registration
You tin register online via your member state of identification'south portal.
Choose state:
Once your registration details have been received and validated, they will be stored in a database and forwarded by your fellow member land of identification to all other EU countries.
When does your registration go active?
Unless you country otherwise, your registration will starting time on the commencement twenty-four hour period of the calendar quarter afterward you request to join the scheme.
For instance, if your application to bring together MOSS is accepted on xx July (during the 3rd quarter), your registration will offset on 1 October (at the commencement of the 4th quarter).
Activate your registration earlier
Yous tin request to join the scheme earlier the beginning of the side by side quarter. In this case, you must inform your member state of identification before the tenth day of the month afterward y'all make your first supply of relevant services.
For example, if yous are already trading on v March and want to include your supplied services in the MOSS scheme from this date, you must inform your member land of identification that you wish to join the scheme before 10 April. If this is washed, all the services you supply from 5 March will be covered by the scheme.
Deregistration
If you want to deregister from the scheme, you need to inform your fellow member state of identification. This should be done at least 15 days before the finish of the agenda quarter. The calendar quarters are from:
- 1 January to 31 March
- 1 April to 30 June
- 1 July to 30 September
- 1 Oct to 31 December
You volition exist notified electronically when your request has been accustomed, and you won't be able to sign upward for the scheme once again for vi months.
Exclusion from the scheme
You will exist excluded from using the scheme if you:
- don't brand whatsoever relevant supplies for 2 consecutive years
- no longer meet the necessary conditions for the scheme
- persistently fail to comply with the rules of the scheme
Temporary exclusion (Quarantine flow)
In certain situations you may be excluded from using 1 or both of the MOSS schemes for a express amount of time (known as a quarantine menses), including:
- if you make up one's mind to finish supplying services covered by the scheme – 6 months
- if you decide to voluntarily leave the scheme – 6 months
- if you persistently fail to comply with the rules – two years
VAT rules
You must use the same VAT number you currently use for domestic VAT returns and charge VAT at the rate of the Eu countries where your customers reside.
Yous should utilise the same invoicing rules equally your member country of identification (an invoice is not required in most countries when supplying services nether the MOSS scheme). This is also the instance for supplies of services from member states of establishment.
All supplies outside the scope of the MOSS scheme must be accounted for using the normal taxation rules for domestic sales.
VAT returns
You take to submit detailed online quarterly VAT returns within 20 days of the cease of each return period. The information is and so securely transferred from your fellow member land of identification to the relevant member state of consumption.
Alert
These VAT returns are made in improver to your normal domestic VAT returns.
Check VAT rates
Yous tin can cheque VAT rates for the supply of telecommunication, broadcasting and electronically supplied services using the Tax Data Communication database.
Keeping records
You lot must proceed records of your activities for x years from the end of the twelvemonth in which the service was supplied and digital copies should be fabricated available if requested, without delay.
The following information must be included in the records you keep:
- the member state of consumption to which the service is supplied
- the type of service supplied
- the date of the supply of the service
- whatever subsequent increase or reduction of the taxable corporeality
- the VAT rate applied
- the amount of VAT payable indicating the currency used
- the engagement and amount of payments received
- whatsoever payments on account received before the supply of the service
- where an invoice is issued, the information contained on the invoice
- the name of the customer, where known to the taxable person
- the data used to determine the identify where the customer is established or has their permanent address or usually resides.
More information about the MOSS Scheme is available on the VAT MOSS portal and detailed information can exist read in the guides
.
Union scheme
You lot tin use the Union scheme when you supply the cross-border telecommunication, television and radio broadcasting, or digital services to consumers in all European union countries except:
- the European union country selected as your member state of identification
- Eu countries where your business has branches established (fellow member states of establishment)
The EU countries where you supply services to are known as member states of consumption.
Selecting a member land of identification
You take to designate a member land of identification.
This tin be any Eu country where yous accept a branch established (fellow member states of establishment).
You cannot modify your member state of identification for the current and 2 following calendar years, unless y'all no longer fulfil the conditions, for example, if you no longer have a co-operative in the member state of identification. In this instance, yous can change the member state of identification to any Eu country where you still have a branch established.
You can make the switch on the aforementioned twenty-four hour period but you must inform both the former and new member state of identification well-nigh your choice. This has to exist washed earlier the 10th day of the month later on you make the alter.
Registration
You tin can annals online via your member state of identification's portal.
Choose country:
In one case your registration details have been received and validated, they will be stored in a database and forwarded by your member land of identification to all other European union countries.
When does your registration go active?
Unless y'all land otherwise, your registration will showtime on the start twenty-four hour period of the agenda quarter subsequently you request to join the scheme.
For example, if your application to join MOSS is accepted on xx July (during the 3rd quarter), your registration volition kickoff on 1 October (at the outset of the 4th quarter).
Actuate your registration earlier
You lot tin request to bring together the scheme before the beginning of the next quarter. In this instance, you lot must inform your member land of identification before the tenth mean solar day of the calendar month after you lot make your first supply of relevant services.
For example, if you are already trading on 5 March and want to include your supplied services in the MOSS scheme from this date, you must inform your member country of identification that you lot wish to bring together the scheme before 10 April. If this is done, all the services you supply from 5 March will be covered past the scheme.
Deregistration
If you desire to deregister from the scheme, you demand to inform your member state of identification. This should be done at least 15 days before the terminate of the calendar quarter. The calendar quarters are from:
- 1 Jan to 31 March
- one Apr to thirty June
- 1 July to 30 September
- 1 October to 31 December
You will be notified electronically when your request has been accepted, and y'all won't be able to sign up for the scheme again for half dozen months.
Exclusion from the scheme
You will be excluded from using the scheme if you:
- don't make any relevant supplies for 2 consecutive years
- no longer meet the necessary conditions for the scheme
- persistently neglect to comply with the rules of the scheme
Temporary exclusion (Quarantine period)
In sure situations yous may be excluded from using 1 or both of the MOSS schemes for a limited amount of time (known as a quarantine period), including:
- if you lot decide to stop supplying services covered past the scheme – 6 months
- if you decide to voluntarily exit the scheme – 6 months
- if y'all persistently neglect to comply with the rules – 2 years
VAT rules
Yous must use the same VAT number you currently utilise for domestic VAT returns and charge VAT at the rate of the EU countries where your customers reside.
You should apply the aforementioned invoicing rules as your member state of identification (an invoice is not required in most countries when supplying services under the MOSS scheme). This is likewise the case for supplies of services from fellow member states of institution.
All supplies exterior the scope of the MOSS scheme must exist accounted for using the normal taxation rules for domestic sales.
VAT returns
You take to submit detailed online quarterly VAT returns inside 20 days of the finish of each return period. The information is then securely transferred from your member state of identification to the relevant fellow member country of consumption.
Warning
These VAT returns are made in addition to your normal domestic VAT returns.
Check VAT rates
You can cheque VAT rates for the supply of telecommunications, broadcasting and electronically supplied services using the Taxation Information Advice database.
Keeping records
You must keep records of your activities for x years from the end of the year in which the service was supplied and digital copies should be made available if requested, without delay.
The following information must be included in the records y'all go on:
- the member land of consumption to which the service is supplied
- the type of service supplied
- the date of the supply of the service
- any subsequent increase or reduction of the taxable amount
- the VAT rate applied
- the amount of VAT payable indicating the currency used
- the engagement and corporeality of payments received
- any payments on account received before the supply of the service
- where an invoice is issued, the information contained on the invoice
- the name of the customer, where known to the taxable person
- the information used to determine the place where the customer is established or has their permanent accost or normally resides.
More information about the MOSS Scheme is available on the VAT MOSS portal and detailed information can exist read in the guides.
Non-Marriage scheme
Y'all can use the non-Wedlock scheme when you supply the cross-edge telecommunication, goggle box and radio broadcasting, or digital services to consumers in all EU countries (including the EU state selected equally your member state of identification).
The EU countries where y'all supply services to are known every bit member states of consumption.
Selecting a member state of identification
You lot have to designate a fellow member state of identification. This can be any EU country y'all choose.
You lot can change the member state of identification at a later on date if you desire to. This can be any European union country you choose.
To make the modify, you volition accept to deregister in your electric current member state of identification and reregister in the newly chosen member state of identification.
Registration
You can register online via your member state of identification's portal.
Choose country:
Once your registration details have been received and validated, they volition be stored in a database and forwarded past your member country of identification to all other European union countries.
When does your registration become active?
Unless you state otherwise, your registration volition kickoff on the beginning 24-hour interval of the calendar quarter after you lot request to bring together the scheme.
For example, if your application to bring together MOSS is accepted on twenty July (during the 3rd quarter), your registration will start on 1 October (at the beginning of the 4th quarter).
Activate your registration earlier
Yous can asking to join the scheme before the beginning of the adjacent quarter. In this example, you must inform your member state of identification before the 10th day of the month subsequently you brand your first supply of relevant services.
For case, if you are already trading on five March and desire to include your supplied services in the MOSS scheme from this date, you must inform your member state of identification that yous wish to join the scheme before 10 April. If this is done, all the services yous supply from 5 March will be covered by the scheme.
Deregistration
If you desire to deregister from the scheme, you demand to inform your fellow member state of identification. This should be done at least 15 days before the end of the calendar quarter. The calendar quarters are from:
- 1 January to 31 March
- 1 April to 30 June
- i July to thirty September
- one October to 31 Dec
You will exist notified electronically when your request has been accustomed, and you won't be able to sign up for the scheme again for 6 months.
Exclusion from the scheme
You lot will be excluded from using the scheme if you:
- don't make whatever relevant supplies for 2 consecutive years
- no longer meet the necessary conditions for the scheme
- persistently fail to comply with the rules of the scheme
Temporary exclusion (Quarantine flow)
In certain situations you may be excluded from using one or both of the MOSS schemes for a limited corporeality of time (known as a quarantine period), including:
- if you decide to finish supplying services covered by the scheme – vi months
- if you decide to voluntarily leave the scheme – 6 months
- if yous persistently fail to comply with the rules – 2 years
VAT rules
You will be allocated a VAT number by the European union state you have chosen to be your member country of identification and charge VAT at the rate of the European union countries where your customers reside.
Yous should utilize the same invoicing rules as your member country of identification (an invoice is not required in most countries when supplying services under the MOSS scheme).
VAT returns
You lot accept to submit detailed online quarterly VAT returns within twenty days of the end of each return flow. The information is then deeply transferred from your member country of identification to the relevant member state of consumption.
Warning
These VAT returns are made in add-on to your normal domestic VAT returns.
Check VAT rates
Y'all tin can check VAT rates for the supply of telecommunications, broadcasting and electronically supplied services using the Revenue enhancement Information Communication database.
Keeping records
You must keep records of your activities for ten years from the end of the year in which the service was supplied and digital copies should be made bachelor if requested, without delay.
The following information must be included in the records you lot keep:
- the member state of consumption to which the service is supplied
- the type of service supplied
- the engagement of the supply of the service
- any subsequent increase or reduction of the taxable amount
- the VAT rate practical
- the amount of VAT payable indicating the currency used
- the appointment and amount of payments received
- any payments on business relationship received before the supply of the service
- where an invoice is issued, the information contained on the invoice
- the proper noun of the client, where known to the taxable person
- the information used to make up one's mind the place where the customer is established or has their permanent address or usually resides.
More information about the MOSS Scheme is available on the VAT MOSS portal and detailed information can exist read in the guides.
Source: https://europa.eu/youreurope/business/taxation/vat/vat-digital-services-moss-scheme/index_en.htm
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