The official rubber-stamping of the Withdrawal Agreement has led to a transitional period that ends on December 31, 2020, during which the UK is still part of the EU VAT system.
UK-based digital businesses and non-EU digital businesses currently registered for VAT MOSS purposes in the UK have to plan accordingly for when this transitional period ends.
The VAT MOSS service is used to declare VAT due on sales to EU-based customers and to remit the VAT to the relevant tax authority. VAT MOSS is a special registration scheme that was introduced in January 2015 when the EU amended its rules so that cross-border B2C digital supplies are taxed in the member state of consumption. The MOSS allows a taxable person to submit a single return for each calendar quarter to the Member State of Identification (in this case the UK).
As the transitional period ends on December 31, 2020, digital businesses will not be able to use the UK’s VAT MOSS service any longer.
As of 00:00 UTC 1 Jan 2021 HamSphere no longer charges VAT on our products purchased by UK based customers.