As Deloitte reports, one consequence of the changes to the VAT treatment of B2C supplies of telecoms, broadcasting and other e-services was that small businesses that trade below the UK’s relatively high turnover threshold faced the conundrum of choosing between registering for VAT in each member state where they had a customer, or registering in the UK (and losing the benefit of the UK’s turnover threshold) in order to use the VAT mini one-stop shop (MOSS) compliance portal.
Following complaints from small business owners on Twitter about how VAT MOSS was a ‘VAT MESS’ for them, HMRC has indicated that relevant businesses will be permitted to segregate their UK and EU trading and register for VAT in the UK (so they can use the MOSS) without accounting for UK VAT on their domestic trading as long as their turnover remains below the VAT registration threshold.
As Deloitte reports, one consequence of the changes to the VAT treatment of B2C supplies of telecoms, broadcasting and other e-services was that small businesses that trade below the UK’s relatively high turnover threshold faced the conundrum of choosing between registering for VAT in each member state where they had a customer, or registering in the UK (and losing the benefit of the UK’s turnover threshold) in order to use the VAT mini one-stop shop (MOSS) compliance portal.
Following complaints from small business owners on Twitter about how VAT MOSS was a ‘VAT MESS’ for them, HMRC has indicated that relevant businesses will be permitted to segregate their UK and EU trading and register for VAT in the UK (so they can use the MOSS) without accounting for UK VAT on their domestic trading as long as their turnover remains below the VAT registration threshold.
