The European Commission has launched a web portal to help businesses to adapt to the changes in VAT rules that will come into force in 2015 and to support the move to MOSS
From 1 January, new VAT rules come into effect for businesses selling telecommunications, broadcasting and electronic services to final consumers.
VAT will be charged where the customer is based, rather than where the supplier is located. These new rules are designed to create a more level playing field for businesses and fairer taxation rights among member states.
In addition, the new Mini One Stop Shop (MOSS) will start operating from 1 January. This will allow companies to make a single VAT declaration and payment in their own member state for all intra-EU transactions. MOSS is meant to simplify the VAT obligations for companies as they comply with the new place of supply rules.
RULES FROM 2015 Telecommunications, broadcasting & electronic services | |||
Services supplied by/to | EU consumer | EU consumer | Non-EU |
EU supplier | Taxable in EU country 1 | Taxable in EU country 2 | No EU VAT |
EU supplier | Taxable in EU country 1(1) | Taxable in EU country 2 | No EU VAT |
Non-EU supplier | Taxable in EU country 1(1) | Taxable in EU country 2 | No EU VAT |
The web portal will help MOSS users by providing information about the various VAT rules across the EU. Member states have different standard VAT rates, different reduced rates and different exemptions.
The Commission says that 'the web portal is the solution to ensure that businesses aren’t overwhelmed when trying to figure out the VAT rate that should apply to their sale. It is part of the continual and consistent effort made by the Commission over the past few years to ensure that the new VAT rules are introduced as smoothly as possible, and that businesses are fully equipped for the change'.
The VAT MOSS portal available here