VATLive > Blog > European News > HMRC warns digital companies on new Brexit VAT obligations

HMRC warns digital companies on new Brexit VAT obligations


HMRC is writing to thousands of UK, US and other international sellers of digital services to warn them to now VAT register in another EU state in readiness for a no-deal Brexit. This covers their sales of e-services, apps, streaming media, online gaming and dating services, e-books and software to EU consumers.

Around 20,000 digital businesses face having to register for VAT elsewhere in the EU. Many of the US app companies used HMRC’s simplified VAT reporting procedures to cover the whole of Europe. They will now lose this and have to re-register twice, both the EU and UK from 29 March 2019 or risk heavy fines.

UK closes MOSS portal 15 May 2019

Since 2015, EU sellers of e-services to consumers of have been able to declare their pan-EU sales and VAT liabilities in a single Mini One-Stop-Shop (MOSS) VAT return. Most non-EU businesses providers registered in the UK due to the light-touch requirements and English language.

However, following Brexit, the UK will be treated as a third country and will fall out of the EU VAT regime. This means all the UK and non-EU companies that report their EU sales to HMRC will have to register in another EU state after 29 March 2019. 

The last UK MOSS return will be for sales up to 29 March 2019. This return will be due by 20 April. The MOSS portal will remain open until 15 May 2019 for any amendments.

Going forward, UK businesses can report UK sales through their regular UK return. Non-UK providers, EU or non-EU, will have to register in the UK to report VAT on sales to UK consumers.


Latest British news

UK only 20% businesses Brexit customs ready

March 5, 2019

HMRC estimates that 245,000 businesses buy and sell goods with other EU27 states. When the UK leaves the Customs Union, 29 March, all movements of goods must be declared for customs, tariffs and VAT. This requires an EORI number (Economic Operator Registration Identification), which is shown on customs declarations etc.

HMRC warns digital companies on new Brexit VAT obligations

March 1, 2019

HMRC is writing to thousands of UK, US and other international sellers of digital services to warn them to now VAT register in another EU state in readiness for a no-deal Brexit. This covers their sales of e-services, apps, streaming media, online gaming and dating, e-books and software to EU consumers.

UK £135 small parcel VAT portal opens for Brexit

February 14, 2019

The UK’s HMRC has opened the registration portal for foreign delivery companies to register post-Brexit VAT on consumer good parcels below £135. This new regime will be triggered under the current default no-transition deal Brexit on 29 March 2019.



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.
VATlive newsletter

Sign up for our free newsletter stay up-to-date with the latest tax news.

VAT Voice


Sign-up to VAT Voice, Avalara’s monthly round-up about VAT and legislation updates to help you stay ahead of the curve.