If your business supplies digital services to consumers in the EU, you can register for HM Revenue and Customs (HMRC) VAT Mini One Stop Shop (VAT MOSS) scheme. There are 2 UK VATMOSS schemes that operate in an almost identical way:
- Union VAT MOSS scheme for businesses established in the EU including the UK
- Non-Union VAT MOSS scheme for businesses based outside the EU (for example, the USA, Canada, China)
Once you have registered for a UK VAT MOSS scheme, you submit, each calendar quarter, a single MOSS VAT Return and single VAT payment to HMRC. HMRC will then forward the relevant parts of your return and payment to the tax authorities in the member state(s) where your consumers are located. This fulfils your VAT obligations. By using the VAT MOSS scheme, you won’t have to register for VAT in every EUmember state where you make digital service supplies to consumers.