On 18th September, HMRC published their latest guidance outlining how those businesses which sell digital services to EU customers will need to register for VAT or VAT MOSS in an EU member state post Brexit. At the same time, HMRC also provided guidance on how businesses should claim VAT refunds from EU member states after Brexit.
VAT MOSS system post Brexit
After Brexit, you will no longer be able to use the UK’s VAT Mini One Stop Shop (MOSS) service to declare sales and pay VAT due in EU member states. The final return period for the UK’s VAT MOSS system will be the period ending 31 December 2019. You should only include sales made before Brexit in your final return. You’ll be able to use the UK’s VAT MOSS system to:
- Submit your final return by 20 January 2020
- Amend your final return until 14 February 2020
- Update your registration details until 14 February 2020
- View your previous returns
Post Brexit sales to the EU
For sales made after Brexit, you’ll need to register for either:
- VAT MOSS in any EU member state
- VAT in each EU member state where you sell digital services to consumers
Claiming VAT refunds from EU countries following Brexit
HMRC also published guidance on the 18th September, outlining how businesses should claim VAT refunds from EU member states after Brexit. You will not be able to use HMRC’s VAT online services to claim a VAT refund from an EU member state after 5pm on 31 October 2019. You’ll still be able to view your previous claims.
How to claim a VAT refund after Brexit
Each EU member state has its own process for refunding VAT to businesses based outside the EU. You’ll need to use the process for the EU member state where you’re claiming a refund, even for unclaimed expenses you had before Brexit.
For further information
HMRC Guidance “Pay VAT when you sell digital services to EU customers after Brexit”
HMRC Guidance "Claim VAT refunds from EU countries after Brexit"
European Commission "EU country specific information on VAT"
If you would like to discuss VAT and Brexit, please get in touch with the team at DRG Chartered Accountants to find out more.
DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.
