VAT MOSS in Sales Transactions

Notes: Post Brexit (i.e. from 1 January 2021), the tax treatment for all the countries outside the UK will be considered as Overseas. Therefore, UK VAT MOSS will not be applicable when digital services are provided for businesses that are located outside the UK. Instead, you can register for the Non-Union VAT MOSS scheme in an EU member state or register for VAT in each EU member state where you supply digital services.

VAT MOSS is applicable only on the sales of a digital service to a EU-Non VAT Registered customer. When creating a sales transaction i.e: Estimate, Invoice, Sales Order etc, make sure that,

Notes:

Quick Tip:

While processing the sale of cross-border digital services, it is important to know the place of supply so as to apply the correct VAT rate. To ease the process of obtaining this information, you can presume your customers’ place of residence based on any accompanying evidence and apply the VAT applicable in that country.

While Zoho Books does not have the option to enter the evidence information directly, we recommend that you use Custom Fields to store this information for your reference while creating invoices.


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