Folks,
The new VAT rules for selling digital services to consumers in the EU allow you to charge different VAT rates for each country but then submit only one VAT return to HMRC. This is known as VAT Mini One Stop Shop (MOSS).
To record sales you make under the MOSS scheme, set the VAT Treatment in Solar Accounts to 'Out of Scope' and add an extra line for the EU VAT amount allocated to a special EU VAT Liability account. See this picture for an example of a sale to a customer in Ireland with the Irish VAT rate of 23%:
http://i.imgur.com/ONXrd8G.png
When you submit a MOSS return for VAT you will need to view the account activity for the EU VAT Liability account to see what transactions should appear on your return. When you make a MOSS payment to HMRC then create a General Transaction from the Cheque Account to the EU VAT Liability account.
For more details about the MOSS rules, see:
https://www.gov.uk/government/publications/vat-supplying-digital-services-to-private-consumers/vat-businesses-supplying-digital-services-to-private-consumers
Cheers
