The new VAT place of supply rules came into effect on 1 January 2015

From 1 January 2015, a new method of accounting for VAT applies to all Member States for B2C supplies of digital services and if a business maintains a VAT registration in a Member State and supplies digital services to consumers it will need to consider where and how to account for the VAT due.

A business can choose where to register for VAT but will need to take advice on how to account for VAT under any particular VAT jurisdiction within the EU. Many businesses will be making supplies in other Member States which will give rise to a liability to register for VAT in each of those Member States.

To deal with this complicated and costly scenario, the Mini One Stop Shop system (MOSS) is being introduced from 1 January 2015 and will give businesses the option of registering in their chosen Member State only and accounting for VAT due in other EU countries using a single VAT return submitted to the chosen Member State VAT authorities.

Compliance tick box for EU businesses include:

  • Identify the location of their customers
  • Apply the correct VAT rate
  • Validate VAT numbers for B2B transactions
  • Collect evidence to verify the location of the customer
  • Store evidence for 10 years
  • Create a quarterly EU MOSS return
  • Issue e-invoices
  • Be audit ready

© Miller Rosenfalck LLP, January 2015

Please contact:

Stuart Miller

DD +44 (0)20 7553 9936

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