The VAT Mini One-Stop Shop (MOSS) is a streamlined system for businesses providing digital services to consumers in the EU.
It simplifies VAT compliance by allowing registration in a single EU country for all EU digital service sales.
MOSS significantly reduces administrative burden, making it easier for businesses to operate across EU borders.
What is MOSS? How MOSS Works MOSS Eligibility MOSS Registration MOSS Reporting
Start checking VAT numbersVAT MOSS (Mini One-Stop Shop) is a simplified VAT system for businesses selling digital services to consumers in the EU. It allows these businesses to register for VAT in a single EU member state, rather than in every country where they have customers.
MOSS was introduced to simplify VAT compliance for digital service providers, reducing the administrative burden of cross-border sales within the EU. It covers telecommunications, broadcasting, and electronic services provided to non-taxable persons.
By using MOSS, businesses can declare and pay VAT due on all their eligible EU sales through a single quarterly return, submitted to their country of identification.
Under MOSS, businesses register for VAT in one EU country (the country of identification) but can sell to consumers across the EU. They collect VAT at the rate applicable in the customer's country.
Quarterly, businesses submit a single MOSS VAT return to their country of identification, detailing sales and VAT collected for each EU country. They make a single payment of all VAT due, which is then distributed to the relevant member states.
This system eliminates the need for multiple VAT registrations across the EU, significantly simplifying compliance for businesses selling digital services to EU consumers.
MOSS is available to businesses providing digital services to consumers in EU countries where they are not established. This includes both EU and non-EU businesses.
Eligible services include telecommunications, broadcasting, and electronic services. These can include services such as web hosting, software supplies, access to databases, downloading apps or music, online gaming, and distance teaching.
It's important to note that MOSS only applies to B2C (business-to-consumer) transactions. B2B (business-to-business) transactions are subject to different VAT rules and are not covered by the MOSS scheme.
To register for MOSS, businesses need to choose a country of identification. For EU businesses, this must be the country where they have their business establishment. Non-EU businesses can choose any EU member state.
Registration is typically done online through the tax authority's website in the chosen country of identification. Businesses will need to provide details such as their company name, trading name, contact information, website URLs, bank account details, and VAT numbers in other EU countries (if applicable).
Once registered, businesses receive a unique MOSS identification number. This number should be used for all MOSS-related correspondence and transactions.
Under MOSS, businesses must submit quarterly VAT returns. These returns must be submitted within 20 days of the end of each calendar quarter (e.g., by April 20 for Q1, July 20 for Q2, etc.).
The MOSS VAT return requires businesses to report their total sales and VAT collected for each EU country where they have customers. They must apply the correct VAT rate for each country and each type of service provided.
Along with the return, businesses must make a single payment of all VAT due. The tax authority in the country of identification then distributes the VAT to the relevant EU member states.
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