UK: MOSS VAT rates changed 1st May 2020 – Digital Publications

Following the recent government announcement on the bringing forward of the Zero Rate treatment on certain publications HMRC have updated their VAT guidance for UK businesses who use the MOSS.

United Kingdom: 1 May 2020

From 1 May 2020, electronic supplies of the following products are zero-rated, unless they are mainly used for advertising, or audio or video content:

• books
• booklets
• brochures
• pamphlets
• leaflets
• newspapers
• journals and periodicals (including magazines)
• children’s picture and painting books

If you are a member of the VAT MOSS scheme who is established outside the EU include these zero-rated supplies in your second quarter VAT MOSS return (for the period 1 April 2020 to 30 June 2020) under the ‘Reduced VAT’ rate type, and apply a 0% VAT rate.”

It’ll be important to establish that the nature of your digital supplies of publication do fall within the above definitions covered by this change.

Source Credit – Centurion

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