As reported in our August VAT update4, businesses supplying digital services across the EU are able to register for a new online VAT service from 20 October 2014. The new service means they will no longer have to register for VAT separately in each country in which they do business. In order to help the many businesses which may use this service, HMRC has released a YouTube video guide5.

The “VAT Mini One Stop Shop” or MOSS will be relevant to around 34,000 businesses across the digital sector including broadcasting, telecommunications and e-service supplies.

From 1 January 2015, the place of supply of EU business-to-consumer supplies of digital services will change from the Member State of the supplier to where the customer is located. By that date all EU Member States will have implement the VAT MOSS. The intention behind the new scheme is to reduce compliance costs for businesses by making compliance with the new rules more simple and easy to administer.

Businesses have been able to register from 20 October 2014 and the service will “go live” from 1 January 2015.

For more information click here.