MOSS Registration and compliance

  As from 1 January 2015, new rules for VAT on telecommunications, broadcasting and electronic services came into force within the whole European Union. The services concerned will always be taxed in the country where the customer belongs – regardless of whether the customer is a business or consumer – regardless of whether the supplier based in the EU or outside. The change in place of supply rules concerns only digital services, being telecommunications, radio and television broadcasting and electronic services, supplied to private consumers. These can be, for example, phone or satellite TV subscriptions, downloadable software, songs or e-books. Any other e-commerce activity is not covered by the change so far. For instance, distance selling of physical goods or of other services that involve human intervention, even though the communication is done by email (i.e. legal services carried out at distance; education at distance involving assistance by the teacher) are not covered by the changes.   

The mini One Stop Shop system (MOSS) is into force on 1 January 2015 and will allow taxable persons supplying telecommunication services, television and radio broadcasting services and electronically supplied services to non-taxable persons in Member States in which they do not have an establishment to account for the VAT due on those supplies via a web-portal in the Member State in which they are identified. This scheme is optional, and is a simplification measure following the change to the VAT place of supply rules, in that the supply takes place in the Member State of the customer, and not the Member State of the supplier. This scheme allows these taxable persons to avoid registering in each Member State of consumption. 

The concept of a taxable person in relation to the mini One Stop Shop (MOSS):

  • Under the Union scheme, a taxable person is a business (be it a company, a partnership or a sole proprietor) which has established its business or has a fixed establishment in the territory of the EU. The taxable person cannot use the mini One Stop Shop for supplies made in any Member State in which it has an establishment (business establishment or fixed establishment).
  • Under the non-Union scheme, a taxable person is a business (be it a company, a partnership or a sole proprietor) which has not established its business in the EU, nor has a fixed establishment there, and it is not registered or otherwise required to be identified for VAT in the EU. 

A taxable person who opts to use MOSS is required to register in the Member State of identification. For the Union scheme this Member State will be the Member State in which the taxable person has established its business. For the non-Union scheme, the taxable person (who has neither a business establishment, nor a fixed establishment, nor is registered or otherwise obliged to register, in the EU1 ) can choose any Member State to be the Member State of identification. That Member State will allocate an individual VAT identification number to the taxable person (using the format EUxxxyyyyyz).

 

This is one stop shop solution, valid for the whole EU and we could offer to you full MOSS service including registration, Registration for VAT in Bulgaria and in EUVAT Compliance, payment processing and tax representation.  

 

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