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I have been approached by a few partners to provide some details on the how Business ByDesign supports businesses who are selling digital services to consumers in the EU.
VAT Mini One Stop Shop (VAT MOSS) is a way of paying VAT if your business supplies certain digital services to other EU countries.
You pay VAT based on the country where the customer bought your product, not the country the seller is based in. It does not affect business to business sales.
VAT MOSS was introduced so that UK sellers and businesses outside the EU could just register and pay VAT to HMRC, instead of having to register for VAT in up to 27 other member states.
For cross border supplies of digital services there is no registration threshold, and VAT is charged at the rate due in the consumer’s country.
MOSS tx calculation and reporting has been enabled in Business ByDesign, however there is a master data considerations that needs to be completed before the system can automatically support MOSS.
Identify all the services that you will be selling and update the tax settings. This is accessed via the Service Master record
Edit the appropriate service > click view all and navigate to the tax section
For each country that your business is selling from, you should create an entry here and tick the box "electronically sold".
Creating a sales order or invoice for private account in an EU country will automatically select tax event "575 - EU sale of services to private persons (MOSS)"
These transactions can then be viewed via the tax report "All VAT / Sales Tax Items" and filter by tax event 575.
Hope this helps
John Meadows
Business ByDesign Solution Expert
Partner Solution Center
VAT Mini One Stop Shop (VAT MOSS) is a way of paying VAT if your business supplies certain digital services to other EU countries.
You pay VAT based on the country where the customer bought your product, not the country the seller is based in. It does not affect business to business sales.
VAT MOSS was introduced so that UK sellers and businesses outside the EU could just register and pay VAT to HMRC, instead of having to register for VAT in up to 27 other member states.
For cross border supplies of digital services there is no registration threshold, and VAT is charged at the rate due in the consumer’s country.
MOSS tx calculation and reporting has been enabled in Business ByDesign, however there is a master data considerations that needs to be completed before the system can automatically support MOSS.
Identify all the services that you will be selling and update the tax settings. This is accessed via the Service Master record
Edit the appropriate service > click view all and navigate to the tax section
For each country that your business is selling from, you should create an entry here and tick the box "electronically sold".
Creating a sales order or invoice for private account in an EU country will automatically select tax event "575 - EU sale of services to private persons (MOSS)"
These transactions can then be viewed via the tax report "All VAT / Sales Tax Items" and filter by tax event 575.
Hope this helps
John Meadows
Business ByDesign Solution Expert
Partner Solution Center
