The first period for submitting VAT-MOSS returns opened on 1 April 2015. Those businesses who have registered for VAT-MOSS must submit their return by 20 April 2015, and pay any VAT due as reported under VAT-MOSS by the same date. Are you and your clients ready?
The VAT-MOSS returns are always due by 20th of the month following the end of the calendar quarter, irrespective of when the UK VAT return is due. The VAT-MOSS return can be done online or by completing a very simple spread-sheet like template. If no digital sales have been made to non-business customers in other EU countries a nil VAT-MOSS return is required.
The online version of the return may be easier to use as it contains some automatic calculation, which is missing from the spreadsheet template. The online return also has links to EU VAT rates, but you may find it easier to use the more direct link below. However, the trader also needs to report which VAT rate applies to their sale e.g. standard rate, reduced rate, zero rate etc. The same product will not necessarily attracted the same type of VAT rate in all EU countries.
The value of each digital sale made from the UK and the amount of VAT due on each of those sales must be reported in pounds sterling. So if your client has priced their European sales in euros or other local currencies, those sales will have to be translated into £s. But which date should the business pick for calculating the relevant exchange rate: the date of sale or the end of the VAT period?
In fact either date appears to be acceptable to HMRC. The VAT-MOSS guidance says if the trader has invoiced in currency other than sterling, that invoiced amount must be translated into sterling at the end of the calendar quarter. However, if the business automatically converts the foreign currency amount into sterling using an agreed daily or other periodic rate to use in their business accounts, those translated amounts should be used in the VAT-MOSS return.
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