Exclusive: VAT MOSS update

This morning Enterprise Nation facilitated a call between small business platforms and HMRC to continue the discussion on how to increase knowledge and awareness of VAT MOSS which comes into effect from 1st January 2015.

On the call, platforms were encouraged to state their position on VAT MOSS on their respective websites so merchants understand where the responsibility lies when accounting for VAT. Respective platforms have been given the opportunity for bilateral talks with HMRC if they wish to clarify the legislation.

PayPal confirmed they will provide a country code to all merchants. If this code accords with information provided to the merchant by the customer at the point of sale, for example a customer's billing address or telephone number, HMRC will accept this as sufficient data to determine the customer's location for VAT MOSS purposes. PayPal confirm:

'The VAT MOSS changes only affect businesses that sell telecommunications, broadcasting and electronic services to people in other countries. The vast majority of businesses that use PayPal are not affected.

All PayPal merchants can receive a Country Code for their customer with every transactions we process. How we send this information depends on how they integrate PayPal with their business.'

HMRC also confirmed further guidance about the 1 January VAT changes and MOSS will be available by the end of this week.

• Click here to view the 5 Steps to VAT MOSS infographic

• Click here to join a midday call with accountant, Emily Coltman to get your questions answered