UK brexit and trading with digital goods with UK.

mikho

Got this email ;(
I need less, not more administrative work...

One option would be to decline service to UK customers?

Dear Customer,

The UK transition period will end on 31 December 2020, and we are writing to tell you about changes to the UK VAT Mini One Stop Shop, and the actions that you need to take.

There will be new rules from 1 January 2021

The UK will no longer be a part of the VAT MOSS service. This means as an EU business that sells digital services to the UK, you won’t be able to use the MOSS portal to declare VAT due to the UK.

What you need to do

The last return you will be able to submit to the UK via MOSS is for Q4 2020 (the period ending 31 December 2020). On that return you must only include sales from 1 October 2020 until 11pm on 31 December 2020.

Any corrections to previously submitted returns for UK VAT must be made via your Member State of Identification’s (MSID) MOSS portal before 31 December 2021.

Declaring VAT on digital services made to UK consumers from 1 January 2021

You will need to register for UK VAT if you make supplies of digital services to UK consumers after the UK has left the EU. Further information on registering for VAT in the UK can be found at: https://www.gov.uk/vat-registration.

More information on Paying VAT when you sell digital services to UK Consumers from 1 January 2021 please visit: https://www.gov.uk/guidance/pay-vat-when-you-sell-digital-services-to-uk-consumers-from-1-january-2021

Further guidance

You can use visit https://www.gov.uk/transition to find further guidance and support that will help your business.

If you have any questions in respect of UK MOSS and EU exit, you can email the UK VAT MOSS team at: [email protected].

Yours sincerely,

UK VAT MOSS Team

InceptionHosting

wow... good old Brexit strikes again.

mikho

Instead of treating UK as any other country outside of EU. They have to make their own rules.

InceptionHosting

Here is the thing though... who is going to enforce it now? lol

angstrom

Not so surprising, given that MOSS is a EU thing

Ympker

Unfortunately, due to all this administrative madness, I moved away from some really nice UK services and also US I know here are many cool providers from the UK but working with providers outside the EU has become quite the hassle.

Let's see how it all plays out.

Same with GDPR funs. One day I will have to mention to my client in GDPR that they are actually browsing the internet in that very moment and security is always at risk :O

alwyzon

UK authorities are funny ones. Something as serious as founding a Limited can be done through an online form in less than 5 minutes, but some trivial tax matters (such as registering for UK VAT handling) has to be done via postal application.

beagle

Outside EU. No VAT. Simples ;-)

mikho

@beagle said:
Outside EU. No VAT. Simples ;-)

Exactly my idea also. I Will post a question to my local Tax office.

AlwaysSkint

Will @Ant switch from € to £ ?

havoc

High end typo in title lol.

I'm just glad I'm a consumer in this mess lol

@AlwaysSkint said:
Will @Ant switch from € to £ ?

Has no impact on any of this. You can bill clients in Canadian rubles if you like

AlwaysSkint

@havoc said:
Has no impact on any of this. You can bill clients in Canadian rubles if you like

Was being facetious

mikho

@havoc said:
High end typo in title lol.

Fixed. Thanks

havoc

@mikho said:

Fixed. Thanks

Didn't know one could edit titles on here...unusual for most forums