I’ve a question regarding the VAT MOSS and paying taxes as a sole-trader through a Self Assesment.
The VAT MOSS threshold is £8,818. If I surpass that, then does the amount that is taxable for EU VAT, should then be excluded from the income tax?
In a year my business earns £80,000. Out of those, £15,000 are from EU-based customers. So If I pay the taxes for this 15K under the VAT MOSS scheme, will my income tax will still be £80,000, or will it be deducted to £65,000 because I’ve paid the tax under the MOSS?
Basically I’m trying to understand if the VAT MOSS is an extra tax burden since I’m paying for the EU sales both in the Personal Income and also to other EU countries, or not.
If someone can share an insight on this, it’d be very helpful.