HMRC have released Brief 4 of 2016 setting out simplifications for micro businesses supplying digital services to customers in other Member States.

This brief outlines the simplifications available to businesses trading below the UK’s VAT registration threshold (currently £82,000) that make supplies of digital services (telecommunications, broadcasting or electronically supplied services) to consumers in other EU member states. Some simplifications are already in place and this brief announces 2 new areas of help for the smallest businesses.

The brief also suggests that those who have registered for VAT MOSS, but have very small levels of trading, should consider if it’s correct for them to be registered as a business for VAT purposes.