Digital exporters have just weeks left to register with the VAT mini one stop shop (MOSS), it has been warned.
The reminder comes after the end of the Brexit transition period, changing the way tax is accounted for in the EU.
According to the Institute of Chartered Accountants in England and Wales (ICAEW), any business that has supplied “eligible” digital and telecommunication services to EU customers in 2021 can register before 10 February.
This will allow the UK-based organisation to consolidate their VAT accounting to just one EU country, rather than in all of the markets they trade in.
Businesses can nominate the EU country where VAT returns are submitted and tax is paid, but traders must still record where sales are made, the amount of VAT collected, and the rate of VAT that has been applied in the country of sale (not the EU country of registration).
The voluntary scheme is open to businesses that supply telecommunication, broadcasting and other “digital services”, such as software, online gaming and distance learning, to non-business customers.
Commenting on the service, the ICAEW said: “For many businesses one of the key considerations in choosing a registration country will be that English is widely spoken. As these countries may be experiencing capacity issues owing to the pandemic, the Tax Faculty advises that it is important that businesses complete registration as soon as possible and do not wait for the deadline.”
The 10 February deadline applies to sales made in January. For sales made in February, the deadline would be 10 March.
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