UK Brexit e-services MOSS alert

The UK’s HMRC has alerted digital services businesses selling e-services to consumers of their VAT obligations in the case of a no-deal Brexit on 31 October 2019. This includes income on: streaming media; e-learaning; apps; SaaS products; e-books and online journals; membership to online cluds; broadcast and telecoms; and memory storage.

Since 2015 reforms, digital services companies have been able to use the Mini One Stop Shop (MOSS) single VAT return to report VAT charged on sales. EU providers can file this quarterly return with their regular resident VAT return. Non-EU providers of e-services may select any one of the member states to file a single return.

After a no-deal Brexit, the UK would no longer offer the single MOSS return. The last UK MOSS return will be for the final quarter of 2019. This must be submitted by 20 January 2020.

UK providers will report their UK sales in their regular domestic return. They must also register in one of the other EU states to continue reporting EU VAT. This registration should be completed by 10 January 2020.