What is MOSS?

How does MOSS work?

Once you register your business for the scheme, you must account for the VAT due on all supplies of TBE services to non-taxable persons. To account for VAT on these supplies you must electronically submit, each calendar quarter, a VAT MOSS return and payment to Revenue.

You register for MOSS in one Member State (known as the Member State of identification) and electronically submit quarterly MOSS returns.

The MOSS returns should include your supplies of TBE services to non-taxable persons in Member States in which you have no establishment. These are known as the Member States of consumption. The MOSS returns should also include the VAT due to these Member States.

These returns, along with the VAT paid, are then transmitted by Ireland to the corresponding Member State(s) of consumption via a secure network.

An annual turnover threshold of €10,000 (exclusive of VAT) is introduced from 01 January 2019. This threshold is introduced to benefit micro-businesses which only occasionally supply TBE services to customers in other Member States. Up to this threshold, the place of supply of those services can be treated as the Member State where the supplier is established, has his permanent address or usually resides. For the threshold to apply, the supplier must be established, have his permanent address or usually reside in only one Member State.

The total value of the TBE services supplied to other Member States must not exceed €10,000 in the current and in the preceding calendar year. Where the supplier opts to apply the general place of supply rules (taxation in the Member State of the customer), they will be bound by this decision for two calendar years. Where the €10,000 threshold is exceeded, the general place of supply rules will apply. A taxable person already using MOSS, and whose total value of TBE services to other Member States is below the threshold of €10,000, can voluntarily deregister for MOSS as of 1 January 2019. However, a quarantine period of two calendar quarters will apply during which the taxable person will not be able to re-register for MOSS.

Further information is available in MOSS Legislation section of this website.

You are registered for distance sales of goods in several Member States. Can you use MOSS?

You can choose to account for VAT on your B2C supplies of TBE services in the domestic returns of each of those Member States. Alternatively, you can register for MOSS in your Member State of establishment in respect of those services. In this case, you must continue to submit returns in each Member State in respect of your distance sales. You cannot include distance sales of goods in your MOSS return.

Next: What kind of supplies can MOSS be used for?