UK correcting VAT MOSS returns for digital services

Thu 11th Jun 2015

The UK’s tax authority, HMRC has today issued guidance to businesses registered for the new 2015 EU VAT digital services regime, MOSS (Mini One-Stop-Shop).

The guidance covers the correction of MOSS VAT returns with the new web portal. Corrections can cover errors in invoices, credit notes or restatement of sales. The UK MOSS portal permits the restatement of invoices for up to 3 years after the reporting period. Returns may be adjusted for the correction, and any refunds paid back to the services provider.

2015 VAT changes to digital services

From the 1 January 2015, EU-based providers of e-services to consumers across EU borders have had to change the VAT rate applied from where they are based to where the consumer is. This brings the B2C digital services into line with other services that went through a similar reform in 2010.

This change could have meant that providers would have had to VAT register in each EU member state where they were selling, so the EU launched the MOSS reporting portals. These enable providers to make one single quarterly report that covers all other EU states where they are trading.

Non-EU based providers of such services already had to determine the country of residence for e-services since 2003. They may now use the MOSS regime, too.