Understanding EU VAT MOSS

EU VAT MOSS (Mini One-Stop Shop)

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 Overview

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.

VAT Reporting Options

MOSS2x

Mini One-Stop Shop (MOSS)
VAT2x

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

 

MOSS Basics

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:

  1. For EU merchants, place of residency will be the member state in which it has a fixed establishment.
  2. For EU merchants who have more than one fixed establishment in the EU, they will be entitled to select one of those member states to be the Member State of identification.  Once that selection is made, they are bound to that selection for the calendar year in which that decision is made, plus two following calendar years.


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.

MOSS Registration

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.

MOSS Returns Filing

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.

Recordkeeping for MOSS

Records that should be kept include:

  • member state of consumption of the supply

  • type of supply

  • date of the supply and the VAT payable

  • any payments on account

  • location information to determine the place where the customer is established


Merchants must keep and have access to records for 10 years.  Under the EU rules, these records must adhere to the following guidelines:

  • Be electronically available, on request, to the member state of identification or any member state of consumption without delay

  • These records must be made available within a month of the request

The above information is intended to provide a general, not comprehensive, overview of MOSS.  For a more detailed description of the regulations of MOSS, merchants should access the European Commission’s “Guide to the VAT Mini One Stop Shop” and speak with a tax professional.