VAT on digital services (MOSS scheme)

The VAT Mini One Stop Shop (MOSS) is an optional scheme that allows you to account for VAT - normally due in multiple EU countries – in just one EU country.

If you supply cross-border telecommunication, television and radio broadcasting, or digital services to non-taxable persons, you may be eligible for the scheme. Services covered under the MOSS scheme include:

• website hosting
• supply of software
• access to databases
• downloading apps or music
• online gaming
• distance teaching

MOSS means you don't need to register with tax authorities in every EU country you sell to, instead, you can register for VAT, file VAT returns and make payments in one single place. You must apply the rules of the MOSS scheme to your customers in all EU countries that you supply to.

There are two schemes running under MOSS:

• the union scheme, for businesses established in the EU or with at least one branch based in an EU country
• the non-union scheme, for businesses not established in the EU and without any branches based in the EU

Choose an option to see which scheme could work for you.

Note: You can also take advantage of simplified VAT rules for low annual turnovers without the need to register with MOSS; check to see if you are eligible.

Your company

• has its head office established in the EU
• only has a branch (not its head office) established in the EU
• has neither its head office or any branches established in the EU

Union scheme

You can use the Union scheme when you supply the cross-border telecommunication, television and radio broadcasting, or digital services to consumers in all EU countries except:

• the EU country selected as your member state of identification
• EU countries where your business has branches established (member states of establishment)

The EU countries where you supply services to are known as member states of consumption.

Selecting a member state of identification

You have to designate a member state of identification. This is the EU country where your business is established (where the head office is located).

Registration

You can register online via your member state of identification's portal.

Once your registration details have been received and validated, they will be stored in a database and forwarded by your member state of identification to all other EU countries.

When does your registration become active?

Unless you state otherwise, your registration will start on the first day of the calendar quarter after you request to join the scheme.

For example, if your application to join MOSS is accepted on 20 July (during the 3rd quarter), your registration will start on 1 October (at the beginning of the 4th quarter).

Activate your registration earlier

You can request to join the scheme before the beginning of the next quarter. In this case, you must inform your member state of identification before the 10th day of the month after you make your first supply of relevant services.

For example, if you are already trading on 5 March and want to include your supplied services in the MOSS scheme from this date, you must inform your member state of identification that you wish to join the scheme before 10 April. If this is done, all the services you supply from 5 March will be covered by the scheme.

Deregistration

If you want to deregister from the scheme, you need to inform your member state of identification. This should be done at least 15 days before the end of the calendar quarter. The calendar quarters are from:

• 1 January to 31 March
• 1 April to 30 June
• 1 July to 30 September
• 1 October to 31 December

You will be notified electronically when your request has been accepted, and you won't be able to sign up for the scheme again for 6 months.

Exclusion from the scheme

You will be excluded from using the scheme if you:

• don't make any relevant supplies for 2 consecutive years
• no longer meet the necessary conditions for the scheme
• persistently fail to comply with the rules of the scheme

Temporary exclusion (Quarantine period)

In certain situations you may be excluded from using one or both of the MOSS schemes for a limited amount of time (known as a quarantine period), including:

• if you decide to stop supplying services covered by the scheme – 6 months
• if you decide to voluntarily leave the scheme – 6 months
• if you persistently fail to comply with the rules – 2 years

VAT rules

You must use the same VAT number you currently use for domestic VAT returns and charge VAT at the rate of the EU countries where your customers reside.

You should apply the same invoicing rules as your member state of identification (an invoice is not required in most countries when supplying services under the MOSS scheme). This is also the case for supplies of services from member states of establishment.

All supplies outside the scope of the MOSS scheme must be accounted for using the normal taxation rules for domestic sales.

VAT returns

You have to submit detailed online quarterly VAT returns within 20 days of the end of each return period. The information is then securely transferred from your member state of identification to the relevant member state of consumption.

Check VAT rates

You can check VAT rates for the supply of telecommunications, broadcasting and electronically supplied services using the Tax Information Communication database.

Keeping records

You must keep records of your activities for 10 years from the end of the year in which the service was supplied and digital copies should be made available if requested, without delay.

The following information must be included in the records you keep:

• the member state of consumption to which the service is supplied
• the type of service supplied
• the date of the supply of the service
• any subsequent increase or reduction of the taxable amount
• the VAT rate applied
• the amount of VAT payable indicating the currency used
• the date and amount of payments received
• any payments on account received before the supply of the service
• where an invoice is issued, the information contained on the invoice
• the name of the customer, where known to the taxable person
• the information used to determine the place where the customer is established or has their permanent address or usually resides.

More information about the MOSS Scheme is available on the VAT MOSS portal and detailed information can be read in the guides.

Union scheme

You can use the Union scheme when you supply the cross-border telecommunication, television and radio broadcasting, or digital services to consumers in all EU countries except:

• the EU country selected as your member state of identification
• EU countries where your business has branches established (member states of establishment)

The EU countries where you supply services to are known as member states of consumption.

Selecting a member state of identification

You have to designate a member state of identification.

This can be any EU country where you have a branch established (member states of establishment).

You cannot change your member state of identification for the current and two following calendar years, unless you no longer fulfil the conditions, for example, if you no longer have a branch in the member state of identification. In this case, you can change the member state of identification to any EU country where you still have a branch established.

You can make the switch on the same day but you must inform both the old and new member state of identification about your choice. This has to be done before the 10th day of the month after you make the change.

Registration

You can register online via your member state of identification's portal.

Once your registration details have been received and validated, they will be stored in a database and forwarded by your member state of identification to all other EU countries.

When does your registration become active?

Unless you state otherwise, your registration will start on the first day of the calendar quarter after you request to join the scheme.

For example, if your application to join MOSS is accepted on 20 July (during the 3rd quarter), your registration will start on 1 October (at the beginning of the 4th quarter).

Activate your registration earlier

You can request to join the scheme before the beginning of the next quarter. In this case, you must inform your member state of identification before the 10th day of the month after you make your first supply of relevant services.

For example, if you are already trading on 5 March and want to include your supplied services in the MOSS scheme from this date, you must inform your member state of identification that you wish to join the scheme before 10 April. If this is done, all the services you supply from 5 March will be covered by the scheme.

Deregistration

If you want to deregister from the scheme, you need to inform your member state of identification. This should be done at least 15 days before the end of the calendar quarter. The calendar quarters are from:

• 1 January to 31 March
• 1 April to 30 June
• 1 July to 30 September
• 1 October to 31 December

You will be notified electronically when your request has been accepted, and you won't be able to sign up for the scheme again for 6 months.

Exclusion from the scheme

You will be excluded from using the scheme if you:

• don't make any relevant supplies for 2 consecutive years
• no longer meet the necessary conditions for the scheme
• persistently fail to comply with the rules of the scheme

Temporary exclusion (Quarantine period)

In certain situations you may be excluded from using one or both of the MOSS schemes for a limited amount of time (known as a quarantine period), including:

• if you decide to stop supplying services covered by the scheme – 6 months
• if you decide to voluntarily leave the scheme – 6 months
• if you persistently fail to comply with the rules – 2 years

VAT rules

You must use the same VAT number you currently use for domestic VAT returns and charge VAT at the rate of the EU countries where your customers reside.

You should apply the same invoicing rules as your member state of identification (an invoice is not required in most countries when supplying services under the MOSS scheme). This is also the case for supplies of services from member states of establishment.

All supplies outside the scope of the MOSS scheme must be accounted for using the normal taxation rules for domestic sales.

VAT returns

You have to submit detailed online quarterly VAT returns within 20 days of the end of each return period. The information is then securely transferred from your member state of identification to the relevant member state of consumption.

Check VAT rates

You can check VAT rates for the supply of telecommunications, broadcasting and electronically supplied services using the Tax Information Communication database.

Keeping records

You must keep records of your activities for 10 years from the end of the year in which the service was supplied and digital copies should be made available if requested, without delay.

The following information must be included in the records you keep:

• the member state of consumption to which the service is supplied
• the type of service supplied
• the date of the supply of the service
• any subsequent increase or reduction of the taxable amount
• the VAT rate applied
• the amount of VAT payable indicating the currency used
• the date and amount of payments received
• any payments on account received before the supply of the service
• where an invoice is issued, the information contained on the invoice
• the name of the customer, where known to the taxable person
• the information used to determine the place where the customer is established or has their permanent address or usually resides.

More information about the MOSS Scheme is available on the VAT MOSS portal and detailed information can be read in the guides.

Non-Union scheme

You can use the non-Union scheme when you supply the cross-border telecommunication, television and radio broadcasting, or digital services to consumers in all EU countries (including the EU country selected as your member state of identification).

The EU countries where you supply services to are known as member states of consumption.

Selecting a member state of identification

You have to designate a member state of identification. This can be any EU country you choose.

You can change the member state of identification at a later date if you want to. This can be any EU country you choose.

To make the change, you will have to deregister in your current member state of identification and reregister in the newly chosen member state of identification.

Registration

You can register online via your member state of identification's portal.

Once your registration details have been received and validated, they will be stored in a database and forwarded by your member state of identification to all other EU countries.

When does your registration become active?

Unless you state otherwise, your registration will start on the first day of the calendar quarter after you request to join the scheme.

For example, if your application to join MOSS is accepted on 20 July (during the 3rd quarter), your registration will start on 1 October (at the beginning of the 4th quarter).

Activate your registration earlier

You can request to join the scheme before the beginning of the next quarter. In this case, you must inform your member state of identification before the 10th day of the month after you make your first supply of relevant services.

For example, if you are already trading on 5 March and want to include your supplied services in the MOSS scheme from this date, you must inform your member state of identification that you wish to join the scheme before 10 April. If this is done, all the services you supply from 5 March will be covered by the scheme.

Deregistration

If you want to deregister from the scheme, you need to inform your member state of identification. This should be done at least 15 days before the end of the calendar quarter. The calendar quarters are from:

• 1 January to 31 March
• 1 April to 30 June
• 1 July to 30 September
• 1 October to 31 December

You will be notified electronically when your request has been accepted, and you won't be able to sign up for the scheme again for 6 months.

Exclusion from the scheme

You will be excluded from using the scheme if you:

• don't make any relevant supplies for 2 consecutive years
• no longer meet the necessary conditions for the scheme
• persistently fail to comply with the rules of the scheme

Temporary exclusion (Quarantine period)

In certain situations you may be excluded from using one or both of the MOSS schemes for a limited amount of time (known as a quarantine period), including:

• if you decide to stop supplying services covered by the scheme – 6 months
• if you decide to voluntarily leave the scheme – 6 months
• if you persistently fail to comply with the rules – 2 years

VAT rules

You will be allocated a VAT number by the EU country you have chosen to be your member state of identification and charge VAT at the rate of the EU countries where your customers reside.

You should apply the same invoicing rules as your member state of identification (an invoice is not required in most countries when supplying services under the MOSS scheme).

VAT returns

You have to submit detailed online quarterly VAT returns within 20 days of the end of each return period. The information is then securely transferred from your member state of identification to the relevant member state of consumption.

Check VAT rates

You can check VAT rates for the supply of telecommunications, broadcasting and electronically supplied services using the Tax Information Communication database.

Keeping records

You must keep records of your activities for 10 years from the end of the year in which the service was supplied and digital copies should be made available if requested, without delay.

The following information must be included in the records you keep:

• the member state of consumption to which the service is supplied
• the type of service supplied
• the date of the supply of the service
• any subsequent increase or reduction of the taxable amount
• the VAT rate applied
• the amount of VAT payable indicating the currency used
• the date and amount of payments received
• any payments on account received before the supply of the service
• where an invoice is issued, the information contained on the invoice
• the name of the customer, where known to the taxable person
• the information used to determine the place where the customer is established or has their permanent address or usually resides.

More information about the MOSS Scheme is available on the VAT MOSS portal and detailed information can be read in the guides.