1st Friday
Tax Chat

A rolling stone gathers no…VATMOSS

A rolling stone gathers no…VATMOSS

Regular readers will know that we have been commenting on this issue for the last year and more.

At the stroke of midnight on 31 December 2014, a new VAT regime for ‘retail’ sales of digital products came into force for all EU-based businesses.

Very broadly, from 1 January 2015, business to consumer (B2C) sales of digital products to customers in the EU will be taxed at the VAT rate in force in the customer’s country. In the UK, sellers have the option of registering with HMRC under the so-called “VAT Mini-One-Stop-Shop” (VATMOSS) scheme. The alternative would be to register separately in each EU member state where the business has customers.

This is a huge change to the VAT system which has thrown up an enormous number of anomalies and unintended consequences for small businesses that provide digital products.

We understand that, in the first two weeks of January alone, over 200 small businesses closed their doors as the cost and difficulty of complying with the new regime was simply too much for them to bear.

We think this is wrong. We are working hard with the Chartered Institute of Taxation and liaising with a number of high profile campaigners (most notably the EU VAT Action Group) to support the efforts to obtain some sensible concessions and practical solutions to some of the problems.

We have produced a “VATMOSS FAQs” paper to assist those who need to know a bit more about the scheme and can also direct you to a number of valuable resources where further detailed information is available.

If you have any questions relating to MOSS or would like a copy of the FAQs, please drop us a line on

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