Businesses that are suppliers of telecommunications, broadcasting and electronic services can register through the Mini One-Stop Shop (MOSS) system, which allows them to register with one EU member state and that member state will distribute collected VAT to the other member states.
MOSS is a new program developed in conjunction with the new EU VAT rules. The optional program allows taxable merchants supplying telecommunication services, television and radio broadcasting services and electronically supplied services to non-taxable customers in member states to account and file the VAT that is due.
MOSS is available to merchants which are established in the EU as well as taxable merchants which are not established within the EU. Without MOSS, suppliers would be required to register in each member state in which he supplies services to their customers.
Mini One-Stop Shop (MOSS)
Local VAT Registration
|Less administration||More complex processing|
|One quarterly filing applies to entire EU||Potential for filing up to 28 individual member state returns|
|Shorter filing and payment deadline (within 20 days at the end of quarter)||Longer filing and payment deadlines (varies by member state)|
|Longer recordkeeping requirement||Shorter recordkeeping requirements (varies by member state)|
|Slower input tax recovery||Fast repayments of incurred VAT|
Each member state has a MOSS program. A merchant who opts to use MOSS is required to register in the member state to which they are established. The follow conditions exist:
For non-EU merchants, or those whose business is not established in the EU nor have a fixed establishment, they can select any member state of identification.
Each member state must provide an electronic method to merchants to register. How they choose to collect this information will vary. Merchants are required to provide certain information to the member state of identification. In practice, member states will provide merchants with a web portal for the submission of this information.
Member states began providing registration procedures October 1, 2014. Existing merchants can and should register prior to January 1, 2015, and the registration will become effective from January 1, 2015.
Merchants are required to electronically submit a MOSS VAT return for each calendar quarter within 20 days of the end of the period covered by the return, regardless of whether any telecommunications, broadcasting, or electronically supplied services are carried for that quarter. Missed filings will initially result in reminders and ultimately to different levels of punishment if the delays continue.
Records that should be kept include:
Merchants must keep and have access to records for 10 years. Under the EU rules, these records must adhere to the following guidelines: