Tax Writer Taxwriter Ltd
Columnist
Share this content
Brexit and money
istock_Alphotographic_aw

Brexit: Mixed messages for VAT MOSS users

by

HMRC guidance on gov.uk indicates that Brexit will immediately affect UK businesses using VAT MOSS from 1 February, in spite of the transitional period which runs until 31 December. However, HMRC press office confirmed on 29 January that this page is out of date.

29th Jan 2020
Tax Writer Taxwriter Ltd
Columnist
Share this content

The European Union (Withdrawal Agreement) Act was passed on 23 January 2020, which applies the legal foundation for the UK to leave the EU at 11pm on 31 January.

There should be few immediate changes, as the transition period will keep most UK laws aligned with those of the EU. However, the rights of UK traders to use the HMRC VAT MOSS portal and enjoy the VAT MOSS turnover exemption are in doubt.

On 28 January, the advice on Gov.uk was that UK businesses will not be able to use UK’s VAT Mini One Stop Shop (VAT MOSS) for sales of digital services made after 31 January 2020. Industry experts are divided as to whether this advice is correct.

Richard Asquith, vice president of global indirect tax at Avalara, said the gov.uk page is out of date as it was written for a no-deal Brexit position that was due to happen on 31 October 2019. 

Register for free to continue reading

It’s 100% free and provides unlimited access to the latest accounting news, advice and insight every day. As well as access to this exclusive article, you can:


Content lock down, tick icon

View all AccountingWEB content


Content lock down, tick icon

Comment on articles


Content lock down, tick icon

Watch our digital shows and more

Access content now

Already have an account?

Replies (7)

Please login or register to join the discussion.

avatar
By MILLY1
29th Jan 2020 10:37

So we register for VAT MOSS in Ireland which reports in Euros. UK businesses record their sales in GBP. What rates of exchange do we use? Daily, average, period end?

Thanks (1)
avatar
By johnt27
29th Jan 2020 11:17

Would be nice to have some clarity over this. We've already prepared clients for the potential changes and the likely need to register in Ireland, to minimise the language barrier. This just creates more red tape for SMEs than less, but that's been typical of government policy for the last 10 years+

Thanks (1)
Ruth Corkin
By Ruth Corkin
29th Jan 2020 11:48

The guidance is out of date and was written for the no deal scenario. However, because the European Parliament has not ratified the Withdrawal Agreement, HMRC is loathe to update the guidance in case something slips up at the EU end and we inadvertently leave with no deal! The EP is due to vote on the Withdrawal Agreement tonight at 18.00 CET, so we should know tonight.
having said all of that, off the record, I have been told that HMRC is expecting the ratification and therefore the transitional period to apply.

Thanks (1)
avatar
By ruzel
29th Jan 2020 13:37

Will this impact the info that needs to be provided on the invoice? E.g. additional VAT number?

Thanks (0)
avatar
By Paul Soper
29th Jan 2020 15:39

Love the "clarification" - I quote... " This means EU rules for customs, VAT and excise will continue to apply to the movement of goods". The whole point surely is that MOSS only applies to e-services, not non e-services and certainly not goods. I assume they meant goods and services, because it is a bit late to introduce this if services and e-services are not included in the transition. Incidentally from 1 January 2021 not only will we have left transition (unless it is further extended!!!) but according to the EU the MOSS will become the OSS, One Stop Shop, as the e-services rules will then apply to all supplies of goods AND services within and into the EU. The current distance selling limits for goods (€35,000 or €100,000 depending on the country) will be replaced the current de minimis for e-services of €10,000 if you are a member of an EU state or, of course, NIL if you are not...

Thanks (0)
avatar
By Jacket
19th Mar 2020 13:59

What was the outcome from this - was the guidance regarding 31 January 2020 incorrect and we should carry on with our MOSS returns as normal?

Thanks (0)
Replying to Jacket:
avatar
By Paul Soper
19th Mar 2020 15:08

For the moment - until 31 December 2020 - after that???

Thanks (0)