Rolling stones gather no MOSS!

Nothing to do with nature!

HMRC have issued guidance as to simplification measures for UK businesses trading below the VAT registration threshold (currently £82,000), that make supplies of digital services to consumers in other EU member states and use the VAT Mini One Stop Shop (MOSS) Service.

  • Businesses with turnover below the registration threshold can rely on any single piece of information, such as the address provided by the customer, to determine where their customer is located.
  • If the activity is carried out as a hobby (i.e., only on a minimal and occasional basis), HMRC does not normally see this as a business activity for VAT purposes and therefore there would be no need to register. What constitutes when an activity is by way of business can be found in HMRC’s VAT Business/Non- Business manual at VBNB21000.

UK businesses with turnover below the UK’s VAT registration threshold can still register to use VAT MOSS for their cross border sales, but do not have to account for VAT on their domestic sales.