Vat refund

VAT on Online Service and Moss System

If a taxable person is registered for the MOSS in an MSID, under the MOSS scheme, the taxable person will submit quarterly MOSS Vat returns automatically or electronically. As there are several schemes of VAT on Online Services and MOSS systems, it makes the work of VAT and VAT return easier than before.

This service has made the VAT process easier than before and also has eliminated the difficulty of registering. However, some people don’t understand this process. So, we are here to help you solve all the difficulties regarding VAT on Online Services and Moss Scheme!

All you need to know about our VAT on Online Services

Just to let you all know the EU Vat place of supply and services was changed in 2016 January. According to it, the VAT place of taxation will be determined by the location of the consumer.

From telecommunication to broadcasting to electronic services, from any non-business entities to private individuals, the VAT will be determined on the customer location.

However, the electronic services or broadcasting services that are affording services to European consumers, although they are European or non-European, will be capable of completing the VAT related requirements via MINI ONE STEP SHOP web-portal. It is also popular as a MOSS system.

However, the MOSS scheme is not compulsory. But if you are a supplier, we would recommend you go for VAT on online services and the MOSS system. Otherwise, you will need to register for VAT purposes, specifically in Member State.

And to simplify the situation, the MOSS scheme will help you out. This helps the taxable people by affording digital services to the non-taxable people located in the EU Member States. In short, it helps in B2C businesses. Even in the cases where they don’t have any sort of establishment, MOSS scheme helps there.

Users of MOSS Scheme

The taxable consumers that are providing broadcasting, telecommunication or e-services to the other non-taxable consumers in the Member States will be able to use the MOSS scheme. However, they mustn’t have any sort of establishment in this case.

In the MOSS scheme, you will see two different schemes. Let us discuss it!

Non-Union Scheme

This is specially made for the taxable people. In this case, these people with their businesses usually do not have any establishment in the EU.

Union Scheme

The Union Scheme is also made for the taxable people. However, in this case, they have an establishment in the EU. They are also making supplies to one of the several Member States. But the Member States they are serving are not established in the EU.

VAT Compliance in Italy

You are able to use the distance selling rules to sell directly to customers in Italy or other EU countries. This way you can leverage the distance selling rules to gain a customer base across the EU while keeping the cost of compliance down.

FAQs on VAT on Online and Moss Services

Can I reclaim MOSS VAT?

If you want, you are capable of reclaiming input VAT in the MOSS VAT return you get. On the MOSS VAT return, the output VAT will be included and the input VAT will not be included.

What is the VAT MOSS service?

This is a way of paying VAT. In this case, if you have a business that provides digital services to the EU countries. The full form of VAT MOSS is Value Added Tax: Mini One Stop Shop. This was created so that the sellers of the UK can pay their VAT to only HMRC and avoid the difficulty of registering for VAT.

What are the services covered under MOSS?

The services that are covered under the MOSS scheme are website hosting, distance teaching, online gaming, downloading music, downloading apps, etc. Along with this, the supply of software and access to databases are also included.

Wrap Up

So, now you know the basic process of VAT MOSS or VAT on Online Services. But there will be troubles that you will face in the process. The process might seem tough and when it comes to the operation, it is tougher. You don’t need to worry because we are here to help you out!

If you have any issues regarding the MOSS scheme for taking care of the VAT and VAT returns of your business, just contact us. The rest is our duty! Your business is our responsibility!

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Filippo Scatigna

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