Brexit and VAT Mini One Stop Shop

HMRC has confirmed that after Brexit, you will not be able to use the UK’s VAT Mini One Stop Shop (MOSS) to declare and pay VAT. The final return period for the UK’s VAT MOSS system will be the period ending 31 December 2019. However, on this final return you should only include sales made before Brexit.

HMRC has confirmed that after Brexit, you will be able to use the UK’s VAT MOSS system to:

• submit your final return by 20 January 2020
• amend your final return until 14 February 2020
• update your registration details until 14 February 2020
• view previous returns

If you want to continue to use MOSS for sales you make after the UK leaves the EU, you will need to register for MOSS in any EU Member State. Alternatively, you will need to register for VAT in each EU member state where you sell digital services to consumers. The digital services threshold of €10,000 (£8,818) will no longer apply.

The place of supply rules on the sale of business to consumer (B2C) digital services is determined by the location of the customer who receives the service rather than the location of the supplier. The MOSS scheme is an electronic system that allows businesses to register in only one EU member state and submit a single VAT return and payment each quarter for all their cross-border supplies of digital services.

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