UK opens EU digital services compliance portal October 2014

Wed 11th Jun 2014

The UK’s HMRC has announced that companies providing electronic services to consumers will be able to register with the new Mini One Stop Shop (MOSS) portal in October 2014 in time for the new UK VAT rules of January 2015.

New VAT rules on B2C e-services in EU

From 1 January the place of supply rules for determining which country’s VAT rates and rules apply will change for B2C digital services provided by EU companies. They will switch from the country where the provider is resident to where the consumer is located. This will mean providers will have to implement live systems to capture the location of their customers, and charge the correct local VAT rate.

The e-services affected include: downloads or streaming video; music; films; e-books; games; App’s; cloud-based computing; internet subscription services e.g. online dating; and internet telephony.

To simplify the compliance procedure, and to eliminate the need for the providers to VAT register in all countries, each member state is creating an online portal where local VAT registered businesses can register and report quarterly VAT by country, and make electronic payments through. The cash collected is then redistributed to the correct country.

In the UK, local companies will be able to register on the UK VAT MOSS from October 2014.