VAT for United Kingdom


VAT - Value Added Tax. According to HMRC, VAT is a tax that is charged on most goods and services that VAT registered businesses provide in the UK. It is also charged on goods and some services that are imported from countries within and outside the European Union (EU).

You need to create a New Organisation and choose the United Kingdom as the country to make use of this feature.

UK VAT Moss

Enabling VAT

To enable VAT Rates for your organisation in Zoho Subscriptions,

Note: You can also enable International Trade checkbox if you’re business is trading with customers outside United Kingdom. This will give access to EC Sales Report, if you’ve integrated Zoho Books.

Enabling VAT

Adding new VAT Rate

To add a new VAT Rate,

New VAT Rate

New VAT Rate dialog box

If you’ve VAT Moss enabled for the organisation, then the EU Member State must be selected.

New VAT Rate for Eu Member State

Editing a VAT Rate

To edit a VAT Rate,

Edit VAT Rate

Deleting a VAT Rate

To delete a VAT Rate,

Delete VAT Rate

UK VAT MOSS


Overview

VAT MOSS (Mini One Stop Shop) scheme is for businesses which supply Digital Services to Consumers (Private individuals or non-business entities) in the European Union(EU). VAT will be levied according to the consumer’s location.

Digital Services:

Broadcasting, telecommunications and e-services fall under the digital services category. Examples of e-services are app downloads, video on demand, gaming, e-books, anti-virus software etc.

Why VAT MOSS?

If your business from the EU sells digital services to consumers in another EU country, VAT will be levied in accordance with the consumer’s EU member country. Your business needs to be registered for VAT with every EU member state where the digital services are being sold which is a pretty tenuous process.

By registering for the VAT MOSS Scheme, your business can skip the process of registering with every EU member state where you supply digital services to consumers.

Once the business registers with the VAT MOSS scheme a single MOSS VAT Return and a VAT Payment should be submitted to the tax agency every quarter. The respective country’s tax agency will take care of forwarding the return and tax payments to the tax authorities of the EU member states.

Conditions for VAT MOSS to be applicable?

VAT MOSS is applicable for digital services which are completely automated or electronically supplied over the internet with minimal/no human intervention.

These are the condition for VAT MOSS to be applicable:

Who are not affected?

Communicating by email and sending attachments, using the internet to facilitate trade does not constitute e-services. Services that use the internet and does not come under the scheme:

Enabling VAT Moss

To enable VAT Moss for your organisation,

Enable VAT Moss

Adding a new VAT Rate

To add a new VAT Rate,

VAT Moss New Rate

Creating a Digital Service as a Plan

To create a digital service,

Digital Service

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