Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the planned HMRC guidance pack setting out advice for UK businesses on preparations for the UK leaving the EU without a deal, whether that guidance will inform UK business to consumer digital services exporters who fall below the turnover threshold for VAT registration in relation to cross-border trade in digital services within the EU that the new arrangements coming into force as a result of the Value Added Tax (Place of Supply of Services) (Supplies of Electronic, Telecommunication and Broadcasting Services) Order 2018 will no longer apply to them in that scenario.

HMRC published a Technical Notice on 23 August 2018 entitled ‘VAT for businesses if there’s no Brexit deal’. The guidance explains the actions businesses will need to take if they want to continue using the Mini One Stop Shop (MOSS) scheme after the UK leaves the EU.

Additional guidance was also sent to all UK users of the VAT MOSS scheme on 27 December 2018 explaining that, should the UK leave the EU without a deal, the threshold will cease to apply to UK businesses.

HMRC will continue to communicate key messages and publish further guidance on the impact of EU exit on VAT and the MOSS scheme to support businesses in preparing for EU exit.