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in VAT Q&A Helpful Soul
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I have clients that sell digital products to consumers in the EU and use the UK's VAT Mini One Stop Shop (MOSS) service to declare sales and pay VAT due in EU member states. 

Is the closing of the VAT Moss Scheme dependant on the terms of trade to be negotiated after Brexit or do I need to advise my clients to register for VAT MOSS in any EU member state (or in each state where they sell digital services to consumers) regardless of what trade deals are agreed after we leave the EU?

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For UK businesses making cross-border supplies where the place of supply is another EU member state, before Brexit VAT MOSS let such businesses register and pay VAT to HMRC instead of having to register for VAT in up to 27 other EU member states.

Now, after Brexit, according to the HMRC the final return period for the UK’s VAT MOSS system will be the period ending 31 December 2020. For sales made on or after 1 January 2021, businesses will not be able to use the UK’s VAT Mini One Stop Shop (VAT MOSS) service to declare sales and pay VAT due in EU member states.

For sales made from 1 January 2021, businesses will need to register for either:

  • VAT MOSS in any EU member state
  • VAT in each EU member state where digital services are sold to consumers

This should be done by the 10th day of the month following the first sale to an EU customer.

Registrations for VAT MOSS in an EU member state is not possible before 1 January 2021.

You can use the following website to check regarding registrations for VAT MOSS:

https://europa.eu/youreurope/business/taxation/vat/vat-digital-services-moss-scheme/index_en.htm#

Alternatively, businesses which do not want to use VAT MOSS from 1 January 2021, they must register for VAT in each EU member state where they sell digital services to consumers. 

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