As you will know since 2015 the EU has required sellers of B2C downloadable content to account for VAT at the rates in the member states in which the consumers are located. They then have to submit a consolidated EU VAT return with all the various local VAT rates declared together – the so-called MOSS system (“Mini One-Stop Shop”). This has considerable implications for the pricing of a product as well as for site administration and accounting systems. What’s not universally appreciated is how far the MOSS is now spreading.

Tax administrations around the world have cottoned on to the fact that MOSS-type rules are an easy way to harvest revenue from foreign retailers. As a result, similar requirements to charge VAT on local supplies of B2C downloads have been applied in countries as diverse as Switzerland, Norway, Iceland, Japan, New Zealand and South Africa (in South Africa, the requirement is not even limited to B2C sales – B2B is caught too!

Now during 2017, further countries have been added:

  • From 1 January – Russia and Belarus
  • From 1 April – Serbia
  • From 1 July – Australia (they impose “GST” on retailers but it’s just VAT by another name) and Taiwan

Unlike MOSS, which covers all EU states via one VAT registration, each of these countries requires its own separate registration.

Read more about EU MOSS here

And about some other states here: Australia, South Africa, Norway, New Zealand

If you would like a free of charge conversation about the impact of MOSS on your business please contact Dino Tornarides at Essentia (; +44(0)213 713 3535)

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