VAT News

UK Brexit-MOSS Rules

Businesses using the UK’s VAT Mini One Stop Shop (MOSS) to declare sales of digital services to consumers in the EU should continue to use the UK’s MOSS portal in the normal way to submit and pay their return for the first quarter of 2019. This return should include supplies made between 1 Jan 2019 and 11pm on 29 March 2019 (the quarter 1 2019 return). The normal submission deadline of 20 April 2019 will apply.

However, businesses will not be able to use the UK’s MOSS portal to declare VAT on sales of digital services to UK and EU consumers that are made after the UK leaves the EU. If businesses wish to continue to use MOSS after the UK leaves the EU they will need to register for MOSS (under the non-union scheme) in an EU member state. Businesses should do this by 10 April 2019.

To allow businesses to do this, they will be automatically deregistered from the UK MOSS system with effect from 1 April 2019. You will still be able to access the system after you have been deregistered to:

  • submit the return for the first quarter of 2019
  • view previously submitted returns, however, any amendments to these returns must be made directly with the EU member state concerned and not via the MOSS system
  • submit outstanding pre-2019 returns and amend previously submitted returns until 11pm on 29 March 2019
  • amend the quarter 1 2019 return and update your registration details until 15 May 2019

In addition to these changes, UK business will also no longer be able to use the threshold of £8,818, and are liable to charge VAT at the appropriate rate dependent on the consumer's member state.

Related articles

COVID-19 VAT Cashflow Tips (Part One)

COVID-19 is affecting business in ways no one thought possible. In order to free yourself from the burden of cashflow worry, we’re trying to do our bit to advice you on ways you can inject income into your bottom line.

Read more
HMRC Postpones Phase 2 Making Tax Digital Till April 2021

April 1 2020, was meant to be the date that HMRC launched phase II of making Tax Digital across the UK. However, due to COVID-19, they have made the decision to postpone the rollout by one year to April 1 2021. 

Read more
Coronavirus: Tax provisions and Easements by Country 

A country-by-country breakdown of the tax provisions and easements being implemented by individual country tax authorities.

Read more