UK businesses who have supplied digital and telecommunication services to the EU since 01 January have just weeks remaining to apply for the non-union VAT mini one stop shop (MOSS), it has been warned.

The Institute of Chartered Accountants in England and Wales (ICAEW) said the service will enable suppliers with no EU establishments to account for VAT due in multiple EU countries in just one jurisdiction.

The warning comes ahead of the 10 February 2021 deadline, the final day businesses can simplify VAT accounting for sales made at any time in January 2021. For any sales made in February, the deadline would become 10 March.

To apply, your business must supply eligible telecommunication, broadcasting or other digital services – such as software, online gaming or distance learning supplies – to non-business customers in the European single market.

The UK business must also nominate an EU country where VAT returns are submitted and tax is paid. Each return should document the sales made in each country, the amount of VAT collected, and the rate of VAT that has been applied (which may differ from country to country).

Commenting on the scheme, the ICAEW said: “For many businesses one of the key considerations in choosing a registration country will be that English is widely spoken. As these countries may be experiencing capacity issues owing to the pandemic, the Tax Faculty advises that it is important that businesses complete registration as soon as possible and do not wait for the deadline.”

Click here to learn more about the VAT Mini One Stop Shop scheme.

For help and advice with related matters, please get in touch with our expert VAT accounting team today.

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