“From 1 January 2015, services from telecommunications, broadcasting and electronically delivered services will be taxed from the place of consumption ie: where the consumer consumes the services. This means businesses in the above sectors have to account for VAT in potentially all 28 EU member states with the current VAT ranging from 3% to 28%.”
Listen further to hear Meridian’s Directior for International VAT Consulting, Mike Molony, discuss the Mini One Stop Shop 2015 VAT changes.
MOSS 2015 Changes explained
Until 31 December 2014, if a UK service provider sells electronic services in GBP to a private customer located in Ireland:
1.The place of supply is in the UK and UK VAT is due.
2.The UK supplier charges UK VAT
3.VAT returns are submitted in the UK only and payment of UK VAT will go to the UK VAT authorities.
From 1 January 2015 if a UK service provider sells electronic services in GBP to a private customer located in Ireland:
1.The place of supply will be in Ireland and Irish VAT is due.
2.The UK supplier invoices with Irish VAT
3.Option to register for the Union Scheme (MOSS or to VAT register in Ireland)
If the VAT registration is in Ireland then the submissions of VAT returns are in Ireland and the payment of Irish VAT is due to the Irish Authorities. However if the registration to the MOSS system is in the UK then the submission of the information (company name, VAT number etc.) goes to HMRC through a designed web portal.
The registration takes effect from the first day of the next calendar quarter. The submission of quarterly MOSS returns will be within 20 days of the end of the period. The MOSS returns should be made in euro. HMRC may also require GBP but when the information is transferred to Ireland, the amount is converted using the exchange rate published by the ECB on the last days of the reporting period.