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EU warns UK on MOSS VAT credits

EU warns UK on MOSS VAT credits

The European Commission ('EC') yesterday warned the UK that it was not complying fully with the EU Mini One-Stop-Shop (MOSS) scheme.

MOSS was introduced across the EU in 2015. It enables providers of paid-for digital services (streaming media, e-books, apps, online news, software etc) to report and pay VAT charged to consumers in other EU countries through their domestic VAT authorities in a single return for all countries. Each country’s tax authorities then forwards the monies to the appropriate foreign tax authority. It eliminated the requirement for providers to VAT register in each EU country if they were selling to local consumers.

The EC has found that the UK is not providing other tax authorities with the details of UK MOSS-filing tax payers’ bank accounts, as required under the scheme. In the event that the taxpayer was owed a credit from another EU country, this created extra administration and delays. The UK has two months to rectify the situation.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.