KashFlow introduces VAT MOSS support

The New Year is fast approaching and for many small businesses, 2015 will be bringing with it new (and controversial) VAT legislation.

From the New Year the sale of digital services by UK businesses to customers within the EU, will require VAT to be charged at the rate of that customer’s country. Digital services refer to broadcasting, telecoms and e-services, or anything that is delivered electronically over the internet or over the air.

There has been a strong backlash to the new rules. But some good news is that compliance with the rules will be much easier for KashFlow customers, through the introduction of VAT MOSS support.

What is MOSS?

MOSS stands for ‘Mini One Stop Shop’ and is an optional VAT scheme started by the HMRC that allows businesses owners in the UK to report digital services VAT. If businesses don’t register for MOSS, they would need to register for VAT in each individual European country they trade in.

By registering for VAT MOSS, businesses can report VAT for digital service sales in a single quarterly return to HMRC. HMRC will then send the payment on to the appropriate countries.

HMRC also recently announced (following the backlash) that while small businesses below the current VAT registration threshold of £81,000 still have to register for VAT in the UK to use MOSS, they will no longer be forced to charge UK VAT on domestic sales.

According to Startups.co.uk: “Businesses will be able to voluntarily register the cross border element of their business and then use that registration number to register for MOSS.”

From January 2015, KashFlow will allow users to record their participation in the MOSS scheme and record the countries of their European customers. In the future they will also be able to produce a VAT MOSS return to submit to HMRC.

You can read more about how to set this up in KashFlow here https://www.kashflow.com/support/kb/vat-moss-in-kashflow/

You can also share your comments and thoughts about VAT MOSS on Facebook and Twitter.