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Where Taxpayers and Advisers Meet

VAT MOSS

jonboy123
Posts: 4
Joined: Tue Jul 24, 2018 12:58 pm

VAT MOSS

Postby jonboy123 » Fri Nov 23, 2018 1:49 pm

Firstly, apologies if this in the wrong forum category.

I am based in the UK and have been asked to develop a website for a business client based outside the UK (IRL). The website will contain an e-commerce element allowing them to sell services, not me, my work is done once I handover the completed website.

I'm registered as self-employed with HMRC, but not VAT registered as I fall within the current threshold.

I've been reading about VAT MOSS online, and i'm slightly confused. According to the docs, under 'Defining digital services' I can see that 'website supply or web hosting services' is listed.

Does this mean I have to register for VAT MOSS, and VAT?

It seems like a lot of effort, especially as my turnover is so small. This may be my only job this year.

Any advice is appreciated.

robbob
Posts: 2683
Joined: Wed Aug 06, 2008 4:01 pm

Re: VAT MOSS

Postby robbob » Fri Nov 23, 2018 2:17 pm

Does this mean I have to register for VAT MOSS, and VAT?
Nope (thankfully)

Vat Moss only applies to sales to people who are not in business "I.e "individual consumers" - (B2C sale)

As your customer is a business this is a B2B sale and Vatmoss won't apply and there won't be any adverse vat implications unless your work falls under one of the quirky rules where you would need to register for vat in the customer country - this won't be the case for you (Hmmmmm a bit presumptuous there perhaps)

Note you will need reasonable evidence your customer is in business if they don't supply a vat number that passes verification tests - details in that regard via link provided


Relevant guidance
https://www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers#businessorconsumer
How to determine whether the customer is in business (a taxable person) or is a private consumer
If you supply digital services and your customer does not give you a VAT registration number (VRN), you should:

treat it as a business-to-consumer supply
charge the VAT due in the customer’s EU member state
If a customer cannot supply a VRN but claims they’re in business but not VAT-registered because, for example, they’re below their EU member state’s VAT registration threshold, you can accept other evidence of your customer’s business status. For example, a link to the customer’s business website or other commercial documents.

It is your decision whether to accept alternative evidence that the customer is in business and your customer cannot ask you to treat a supply as business-to-business if they have not given a valid VRN.

If you accept that your customer is in business, the supply does not come within the scope of these business-to-consumer arrangements. With a cross-border business-to-business supply the customer will be responsible for accounting for any VAT due to the tax authorities in their EU member state

jonboy123
Posts: 4
Joined: Tue Jul 24, 2018 12:58 pm

Re: VAT MOSS

Postby jonboy123 » Fri Nov 23, 2018 3:05 pm

Hi robbob,

Thanks for the reply, it's the most easy to understand explanation I've come across in days!
Note you will need reasonable evidence your customer is in business if they don't supply a vat number that passes verification tests - details in that regard via link provided
In my previous B2B sales i've never asked for a VAT number, I wasn't aware that it was required? I send the invoice, receive my money, and pay the required tax when it's due. Is this incorrect? :O

robbob
Posts: 2683
Joined: Wed Aug 06, 2008 4:01 pm

Re: VAT MOSS

Postby robbob » Mon Nov 26, 2018 10:56 pm

In my previous B2B sales i've never asked for a VAT number, I wasn't aware that it was required? I send the invoice, receive my money, and pay the required tax when it's due. Is this incorrect? :O

Nope you don’t Need a vat number - it’s just that having a vat number is the best evidence that your customer is in business and not a consumer.

If there is no vat number follow the quoted bit below where it mentions other evidence that can be accepted for non vat registered traders eg website link or other commercial documents.

I think the hmrc advise isnt worded the best it should probably say with no vat number for customer treat as b2c supply UNLESS your customer can supply other reasonable evidence that they are in business.


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