VAT MOSS audits, queries & penalties

The tax authority of the member state where you make digital supplies to private consumers has the legal right to audit the records of a business registered for VATMOSS. The Commission and the vast majority of member states have agreed an audit code of practice to minimise the risk of imposing unreasonable burdens on businesses. This means that normally the tax authority of your home member state will co-ordinate such audit requests and contact the business to discuss the scope and coverage of the audit requirements. It will be possible for an authorised tax official from another member state to attend any audit that is arranged, but the audit team will be led by a UK HMRC official.

To resolve disputes and/or pay any penalties or fines, you will be expected to deal directly with the tax authorities in the relevant member state to which you make digital supplies and to make the payments using the currency designated by that member state.

RKG Consulting can assist you with all your compliance requirements.