As of 1 January 2015 new VAT regulations apply to the digital economy. Suppliers of telecommunications, electronically supplied services and radio/television broadcasting services to non taxable persons must apply VAT in accordance with VAT rates in the country of residence of the customer. To help suppliers cope with this change the Mini One Stop Shop (“MOSS”) was established.
MOSS is an optional web portal service where taxable persons registered in a Member State (the Member State of Identification) submit quarterly returns online outlining digital services supplied to non taxable persons in other Member States (Member States of consumption) along with any tax due. The Mini One Stop Shop VAT returns (as well as VAT paid) are forwarded to Member States of consumption by the Member State of Identification. As a result the taxable person must only submit one return and one payment, thus avoiding the obligation to register and submit returns in several Member States. However, the taxable person must still comply with their domestic VAT obligations and file VAT returns in its own Member State.
Within MOSS there are two schemes: ‘The Union Scheme’ and ‘The Non-Union Scheme’. Both schemes apply to the entire EU and cannot be exercised in just one Member State. The Union Scheme can be used by a taxable person who has established its business or has a fixed establishment within the EU. MOSS can be used for all Member States except for those where the taxable person has an establishment. Taxable persons who are not required to register for VAT in the EU and do not have an establishment in any Member State can apply to the Non-Union Scheme.