Hi 

Exchange rates at the end of the March quarter and some practical guidance

HMRC has issued VAT Information Sheet 02/15 to provide guidance about the exchange rates to be used when completing VAT Mini One Stop Shop (MOSS) returns in sterling for the quarter ended 31 March 2015.

The first returns under the VAT Mini One Stop Shop (MOSS) scheme in the UK will cover the period to 31 March 2015 and are due by 20 April 2015.

The MOSS scheme is designed to make administration easier for businesses which have to account for VAT on digital services supplied to non-business customers in other EU member states. As is well known, the rules changed on 1 January 2015 so that the place of supply for these services is the country where the consumer belongs, which means that UK businesses have to charge and account for VAT according to the local VAT rules of the customer’s member state. This can be done in one single return if the business registers to use the MOSS.

Amounts charged to customers in currencies other than sterling must be converted into sterling at the end of each calendar quarter using the conversion rate published by the European Central Bank on the last working day of that quarter.

The rates published in VAT Information Sheet 02/15 are for the most commonly-used currencies and are based on the exchange rate published by the European Central Bank on the last reporting day of the VAT MOSS quarter.