As from 1st January 2015 the EU will implement a number of changes in the place of supply rules in a business to consumer scenario, which will shift the place of supply to the country of consumption of telecommunications, broadcasting and electronically supplied services. The main consequence of this is that VAT becomes chargeable in accordance with the regulations of the Member State where the customer is established.
Under normal circumstances this would require VAT registration by the supplier in each and every Member State where that supplier is providing the service, however, acknowledging that this would have been a significant administrative burden to businesses which could hinder cross-border trading of the affected services, the European Commission has introduced the Mini One-Stop Shop (also known as "MOSS").
This system, which has already been implemented and can be registered for in anticipation of the 1st January, will enable the operators who opt to operate the MOSS to retain one VAT registration number, and report the supplies made to customers established or residing in other Member States through the electronic completion of the MOSS return. Payment of all the VAT due would be made to the Member State of Registration.
If you feel that these changes affect your business do not hesitate to Contact Us for Guidance.
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