Skip to main content

What is MOSS? Calculating VAT when selling electronic services

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.

Comments

Popular posts from this blog

Accounting and Taxation Submission Links for Australia

https://taxaccountantmelbourne.webs.com/ https://accounts-nextgens-initial-project.webflow.io/blog https://5ea7ddfe1b9a8.site123.me/ https://sites.google.com/view/taxagentmelbourne/ https://accountsnextgen.hatenablog.com/entry/2020/11/24/135529 https://visual.ly/users/arpitnextgen/portfolio https://in.pinterest.com/arpitnextgen/ https://accountsnext.cgsociety.org/ https://www.behance.net/accountsnext https://mix.com/accountsnext https://list.ly/accountsnext/lists https://trello.com/accountsnext https://au.showmelocal.com/profile.aspx?bid=23846821 https://mylisting.aussieweb.com.au/thankyou.aspx?s=a&id=190331 https://au.oceaniabiz.com/victoria/accounts-nextgen-344995 https://yp24.com/Accountant/AU/Melbourne/Accounts-NextGen_40639.html http://www.wikimoneyau.com/practitioners/profile/1470/Arpit-Umrewal https://www.eventbrite.com.au/o/accounts-nextgen-30214461010 http://taxation-consultants-vic.australia2business.com/ https://mapsconnect.apple.com/business/ui/editPlace?id=da8e3b5b-8ac...

List of 7 things that you didn’t know your accountant can do

Accountants play a very important role in running a business. But most of the people look at accountants in a very limited way. Accountants have a lot of diverse works to do for your industry. In this blog, we are going to discuss the additional things that an accountant can do for you. After completing this blog, you will come out of your general perception of accountants and tax accountants . Take a look at the list of additional works that your accountant can do: 1.     They can listen and support you regarding your business: -          While you are engaged in your business, there is very little chance that you are going to get proper advice from someone. Because there are circumstances when your business does not run so smoothly. At this point in time, your accountant can give you the most valuable advice to get your business back on track. No one other than an accountant can know more about your business other than accoun...

JobKeeper to continue for eligible businesses until March - Accounts NextGen

  The Australian Prime Minister Scott Morrison gave a lifeline to the small businesses by continuing the JobKeeper scheme for the eligible businesses until March 2021. Due to the COVID-19 crisis, this unemployment benefit scheme is extended for six months. This critical decision came into existence two days before the Treasurer Josh Frydenberg delivered the federal budget. The job keepers can slate better with this extension until March 2021 to better support their business.   However, the tax accountants in Melbourne are of the view that this subsidy scheme will now be established as a two-tier payment mode scheme. This scheme was reframed with some extensions, tightened eligibility, and pay cuts. What Changes You Will See in This Newly Extended JobKeeper Scheme? ●        The second phase of this scheme will run until 28 March 2021. ●        The scheme will be reframing and based upon the hours and has a t...