What is MOSS? Calculating VAT when selling electronic services - Accounts NextGen

What is MOSS? Calculating VAT when selling electronic services

What is MOSS? Calculating VAT when selling electronic services

What is MOSS_ Calculating VAT when selling electronic services (1)

Want some special guidance on how to treat VAT correctly for your automated electronic service supplying businesses? No wonder, you have landed at the right page. Here you’ll find some detailed tips from expert tax accountants Melbourne, after which you’ll gain a deep understanding of various dynamics of VAT.

What’s VAT?

VAT stands for Value Added Tax. It is a kind of tax that is levied on goods and services while selling and purchasing process. However, VAT is also called GST in Australia (GST-stands for Goods and Services Tax). Nearly all types of goods and services come under VAT.

Hence, if your business is also operational in the field of supplying or selling electronic services, then it will be influenced positively by the scheme ‘MOSS’ (Mini One Stop Shop).

What is MOSS?

If you run a business on a small scale in which you provide electronically supplied services across E.U. country, and the burden of VAT appears annoying, then MOSS is definitely for the people like you. Value Added Tax: Mini One Stop Shop after being brought in E.U. countries on 1 January 2015 enabled sellers just to pay VAT to HRMC because earlier registering VAT in every E.U. country was essential.

But what are Electronically supplied services? How to be eligible for MOSS?

If you want to be eligible for MOSS, your digital services must meet the requirements. According to E.U. law for MOSS, a business should be operational in sectors, such as- telecommunication, e-services or broadcasting and irrespective to other business must be supplied directly to consumers. For example, a business that sells-

  1. Hosting services
  2. Delivery of services related to websites (E.G. CMS Systems, Website Creators, Ready Templates)
  3. Downloading and updating computer programs
  4. Subscriptions to electronic magazines and paid contents
  5. Music, Digital Gambling, Films, and Games,
  6. Political, Entertainment, Cultural, Scientific, and Sports Broadcasts transmitted electronically
  7. E-Learning and other services, like Internet Courses, E-Books and Webinars, etc. are eligible to reap the benefits of MOSS.

Your electronic products business must be operational and supplying these services; otherwise, you can go with VAT- the general rule for taxation.

Union and non-Union MOSS

Union and Non-union are two schemes that come within MOSS:


  1. The Union scheme– if you are a taxable person working and have an establishment within the boundaries of the European Union (E.U.), while at the same time supplying goods and services to the Member States without any establishment.
  2. The non-Union scheme– If you are a taxable person operational in E.U. without any establishment.

For the non-Union and the Union MOSS scheme, the basic rules on the MOSS operational activities are almost similar. The only separate thing is the criteria where the company can sign up for MOSS.


As per tax accountants in Melbourne, the mini one-stop-shop (MOSS) scheme for VAT is however quite simple to understand. MOSS is quite helpful to trip down the burden on businesses and providing them relief from going through high VAT. Ultimately, the supply of broadcasting, telecommunications, and electronic services has become stress-free to some extent.

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