Just when I was getting there, I've become thoroughly confused by the following interpretation of the VAT Place of Supply Threshold for Digital Services (from an article dated 3rd January 2021):
"What is VAT MOSS and does it affect UK Businesses after Brexit?
If your sales of digital services to the EU are less than 10,000 Euros, then you can’t register for the VAT MOSS scheme. Your business will need to follow the VAT rules for the country your business is based in. So a UK company will add 20% to its digital sales and report the amount of VAT using normal VAT arrangements."
https://www.crunch.co.uk/knowledge/tax/what-is-vat-moss-and-does-it-affe...
Surely a business making B2C EU digital sales can (and should) register for Non-Union VAT MOSS? Come to that is there any longer a Euro 10,000 registration threshold for UK businesses, given that we're now outside of the EU? Is it me, or have Crunch got the wrong end of the stick?
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My understanding is also that the threshold is now nil. So it would be necessary to register for non union Moss by 10th of the next month following a digital sale to an EU consumer.
You are probably right, while you had to register for VAT to submit VAT MOSS returns, I don’t see why you would need to register for UK VAT before registering for non union VAT MOSS.
They should probably take down the article given they already say they don’t advise on this. I know enough to tell clients that I don’t either.
Agree with Matrix, for a UK trader there is a nil threshold, so a UK trader selling to an EU consumer triggers requirement to register for MOSS, and registration is in an EU member state, not the UK.
HMRC guidance is vague because MOSS is nothing to do with the UK. Would Spanish taxman known a UK business has sold €5 of apps to a Spanish consumer? Would HMRC care and/or report you to the Spanish?
No requirement to register for UK VAT either, that was an old rule that no longer exists post Brexit.
The article appears to be wrong, but as it was published on 3rd January 2021, there was still so much up in the air at that time.