Monday, October 6, 2014

MOSS to come into effect soon! - Rules governing the place of supply will change as of 2015

The tax authority has published a notification on the MOSS, the “Mini One Stop Shop”, which enables a mini one stop shop value added tax (hereinafter: the “VAT”) administration to taxpayers providing services, which can be supplied at a distance.

 The mini one stop shop (MOSS) coming into force as of 1 January, 2015 will allow taxpayers providing telecommunications, broadcasting or electronically supplied services to non-taxpayers in a Member State in which they do not have an establishment, to submit their community VAT return due on those supplies via a web-portal in the Member State where they are identified. This one stop scheme is optional and is merely a simplification measure following the change to the VAT place of supply rules as of 2015.

 In what ways will the rules pertaining to the place of supply in the EU VAT legislation change?

 Place of supply will not be the Member State in which the service is provided, but the Member State where the recipient (customer) is situated. The MOSS enables the taxpayers not to register for VAT purposes in each Member State of consumption.

 The European Commission with the cooperation of the respective Member States set up guidelines on the use of the MOSS scheme, which introduce the fundamental basis of its use in a comprehensible manner, making easier the deliberation regarding the entry and to bring decisions during the every-day use for the taxpayers. These guidelines can be already found on the webpage of the Commission (Guide to the VAT mini one stop shop; Explanatory notes on the EU VAT changes to the place of supply entering into force in 2015; Complementary guidance on data monitoring).

 Following the entry into force of the MOSS our further detailed article on the subject may be expected, but certainly until and thereafter our professionals will remain at your kind disposal to answer individual enquiries.

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