VAT MOSS Registration

[Dillon Lawrence Ltd]

We're a relatively new business so are currently below the threshold for VAT.

We are however being charged by suppliers (servers, licenses etc) for VAT (we can't provide a VAT ID number) as we aren't VAT registered.

We also provide hosting and cloud management services to clients throughout the EU. This is a mix of B2B and B2C as anyone can buy a hosting plan online.

As I understand it, you can join the VAT MOSS scheme below the threshold and charge nil VAT on invoices. Would this be worthwhile doing?

 

[lesvatadvice]

I would register for VAT in your circumstances. This will allow recovery of VAT on your Reverse Charge purchases.
The registration threshold for VATMOSS is only €10k, whilst the UK registration threshold is £85k.
If you register then you add VAT to UK sales, which won't affect your business customers. Your sales to non-UK business customers are VAT-free - you will need the usual Reverse Charge wording on your invoices.

But, do your arithmetic first!

 

[Dillon Lawrence Ltd]

If you register then you add VAT to UK sales, which won't affect your business customers.

Thanks - so I've got this right, it only impacts B2C?

 

[lesvatadvice]

VATMOSS is only for B2C sales.