VAT-registered freelancers wondering about steps to take now ahead of 2015 rule changes affecting the supply of e-services to consumers in the EU can now put an asterisk by October.
That’s because HMRC says that month will see the opening of MOSS – the service that saves such firms having to register for VAT in every member state in which they sell such services.
EU-facing suppliers with their main operation or headquarters in the UK will have to register with HM Revenue & Customs to use the service, known as VAT ‘Mini One Stop Shop.’
Such businesses will be able to register for the service once it opens in October but can then authorise an agent, such as their accountant, to operate it on their behalf from January 1st.
HMRC estimates that between 27,000 and 42,000 UK businesses are due to register with the service, and it expects that most of them will be small-to-medium-sized enterprises.
The tax authority also says that businesses affected by the incoming EU VAT rule change, and therefore likely to use MOSS, include those selling apps, e-books and streaming services.