What You Need to Know About VAT Moss RegulationsImplemented by European Union as a Webshop Owner

1On 1 January 2015, the place of supply of telecommunications, broadcasting and e-services to non-taxable persons will be the place where the customer is established, has a permanent address or usually resides. Taxable persons that make such supplies will be obliged to register, charge and account for VAT in the Member State of the customer.

2The Mini One Stop Shop is an optional scheme which allows businesses that supply telecommunications, broadcasting or e-services to consumers 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 one Member State. Otherwise, businesses making such supplies would be obliged to register for VAT, file returns and make payments in each Member State in which they make these supplies.

3In simple terms, the business registers for MOSS in one Member State (known as the Member State of identification) and electronically submits quarterly MOSS returns in respect of its supplies of telecommunications, broadcasting and e-services to non-taxable persons in Member States in which it is not established (known as the Member States of consumption) along with the VAT due to these Member States. These returns, along with the VAT paid, are then transmitted by the Member State of identification to the corresponding Member State(s) of consumption via a secure network.

4The scheme can be used by taxable persons supplying telecommunication, broadcasting or e-services tonon-taxable persons in Member States in which they do not have an establishment.There are 2 schemes within the Mini One Stop Shop scheme –

The non-Union scheme for taxable persons that have no establishment within the EU and

The Union scheme for taxable persons that have an establishment within the EU (but are making supplies to Member States in which they are not established).

5• The current VAT on e-services scheme which applies to taxable persons who are not established in the EU and who supply e-services to non-taxable customers in the EU was replaced by the MOSS (non-Union scheme) on 1 January 2015.

6Use of the MOSS scheme is optional. However, if you opt to use MOSS you must use it for all of your Business to Consumer (B2C) supplies of telecommunications, broadcasting and e-services in Member States in which you have no establishment.

7If you make supplies to non-taxable persons in Member States in which you have no establishment, you may instead register for VAT in each of those Member States. The MOSS scheme is a simplification measure to reduce the administrative burden and cost on business.establishment.