What is the VAT Mini One Stop Shop (a.k.a VATMOSS)?

This is a complicated topic, but we'll do our best to make it simple.

In effect, VATMOSS means that if you're selling digital products to an EU citizen then VAT is charged at the purchaser's (your customer) country rate instead of the sellers' (yours).

VATMOSS applies to digital products being sold to consumers only, so it does not apply if you are selling to other businesses.

It also does not apply to physical products like t-shirts, or to online courses that include a live element like a webinar, but it does apply for any digital files like images, text, e-books, music, etc, and for services like website supply or hosting, software updates and the like. It even applies to online courses that do not include a live component.

VATMOSS was brought in in January 2015 in order to prevent large companies like Amazon from routing sales through low-VAT countries like Luxembourg to avoid paying proper sales tax, but it obviously makes life a lot harder for smaller companies and sole traders - exactly the kinds of people Quaderno is trying to help.

The good news is that we at Quaderno are all over this, and will automatically apply the correct sales tax to your invoices as long as you can supply us with the location evidence we need - which most payment gateways allow you to set up easily.

For more information on VATMOSS, check out the excellent guide by the British Government here, and an article specifically for online creative professionals here.

For even more depth, see  here.

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