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Hi everyone,
Below are my concern which I’m still curious of. Somehow I slightly understand the UK VAT.
- I have registered for VAT last year. And still I’m not so sure how it works. I mean I am there that I have too and make a return and pay for my obligation. but when? as I have periods quarterly so i will do the return quarterly? But whats all about annual return for?
- Also I have registered on a scheme VAT MOSS. I do read more about it and based on my understanding it is a my sales from EU customers. So on, do I need to total those value regardless of which country a customer is? also, I also scheduled quarterly, so Do I need to pay annually too? This is the most curiosity I have is the annual return for? My apology I’m new to it.
- Now I have those 2 VATs, the regular one which is the one I acquire firstly when I applied for VAT and the VAT MOSS (where u cannot apply for vat moss if you dont have the VAT account) My question are, How do I manage them? was it:
- VAT MOSS is separately calculated as it involves all sales from EU countries? am I right?
- And my regular VAT will be the sales outside UK and EU Countries? am I right?
I hope someone can make me understand and simplify this 2.
Firstly the regular VAT will be all sales you make with a place of supply in the UK, so most ‘physical’ sales unless you’re selling to business customers in the EU or exporting goods.
The MOSS is used for sales of digital services, since digital services are supplied where the purchaser lives using the MOSS stops you having to register in every EU member state. So your MOSS returns will split out your digital services sales to each member state.
In both cases if you’re on quarterly retruns that’s when you make the retrun and pay any tax. There’s only an annual VAT return if you registered for the Annual Return scheme, otherwise you submit and pay each quarter.
I would guess that any Annuakl Return you’re asking about is your normal tax return where you’ll pay either Corporation or Income Tax, this return is nothing to do with VAT, thats for different taxes.
I think that if you’ve signed up for both a normal VAT registration and a MOSS registration without really knowing what either is for the best thing you can do is have a talk with an accountant, there are really too many pitfalls here to deal with in a back and forth on an internet forum. Are you sure you needed to register for either of those scheme’s is your turnover high enough to require it, or did you just register because you thought that’s what businesses do?
Hi,
Thank you so much for your response and it was so informative.
I am currently a digital product and services. As i dont have physical sales within UK invoming or outgoing. Which for now i do digital services. So on, moss is ok to focus with?
So how about my regular VAT? How do i fill such since i dont have physical sales . Do need to pay something? What i mean is that, all my sales happen digitally..
We serve worldwide so i was so curious about it. Now for me MOSS is clear that all sales to EU will be under MOSS. HOW ABOUT SALES from US or Asia?where they will be belong? Was under my regular vat? Its not a physical sales its digital..
My point on the reg VAT is how to comply with our sales where as u mentioned its a physical sales in uk ..
How about my sales to my UK customers? Where they will belong? Still its digital sales.
Thank you again for your feedback. I hope i made clear on what my concern is.
Regards
You’ll need to look at how you registered for UK VAT, if you registered as ‘Supplies of Digital Services (below UK VAT threshold) under VAT MOSS arrangements” then so long as you are under the UK threshold you can submit nil returns in the UK.
If you didn’t register in the UK just so you could use MOSS then you’ll need to account to HMRC for the VAT on your UK sales each quarter.
Digital services supplied to consumers or businesses outside the EU are outside the scope of EU VAT adn so wouldn’t need reporting on either MOSS or UK returns.
However you do need to be certain what is meant by digital services, as anything not in that definition may well be taxable UK sales.
I’d familiarise myself with the guidacne here: https://www.gov.uk/guidance/register-and-use-the-vat-mini-one-stop-shop and linked from there.
And as I said before as you seem uncertain as to what you’ve registered for, why you’ve registered, and what it covers, and you’re dealing with dozens of different tax regimes (do you know if you need to register in the US or South Africa etc. etc. if you’re making worldwide sales) then I really do think you need to sit down for a chat with an accountant who’s familiar with these issues as getting it wrong could be quite costly.
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