What is VAT MOSS?

From 1 January 2015, a new regulation has come into place where VAT on digital products sold in the EU will be chargeable in the place of purchase rather than the place of supply.

VAT Mini One Stop Shop (VAT MOSS) is being introduced to save UK businesses having to register for VAT in every EU member state where they supply to consumers. They can use the VAT MOSS online service provided by HMRC.

VAT MOSS only applies to digital products being sold to consumers in the European Union (EU).

For Example: If you’re simply a freelance illustrator or designer, VAT MOSS does not affect you however if you are selling logo templates and so on through your own website that are marketed to consumers then there is a possibility of a whole load of paperwork.

Who's affected by VAT MOSS?

It’s important to reiterate that the VAT MOSS regulation applies to digital products only. So that means prints, books and the like are not affected. But if you’re selling eBooks, downloadable training, tutorials, images, PSDs, games, WordPress or motion templates or typefaces, you need to comply with the regulation.

Of particular interest to creative professionals, is the following information outlining exactly what e-services are covered by the change in rules.

If you sell any of the following to consumers in the EU, the VAT changes will affect you:

• E-books
• Digitised documents e.g. PDF files
• Music
• Films
• Games, including games of chance and gambling games
• Programmes on demand
• Online magazines
• Website supply or web hosting services
• Distance maintenance of programmes and equipment
• Supplies of software and software updates
• Advertising space on a website
• Anti-virus
• Software
• Online auctions

However, if you sell purely to other businesses, the VAT changes won't affect you.