News › Weekly Alert Article

Mini One Stop Shop

17 Jul 2014

From 1 January 2015 significant changes will be introduced in the EU VAT legislation for the provision of services in the areas of telecommunications, broadcasting and electronic services. Taxand Cyprus takes a look at the changes in the VAT place of supply rules and the new electronic portal developed to simplify their implementation. 

Under the new EU VAT legislative changes, the supply of telecommunications, broadcasting and electronic services to private individuals and non-business customers will always be taxed in the country where the customer belongs i.e. the Member State of the customer and not the Member State of the supplier.

To allow for the simplified implementation of the new rules it was decided to set up a single electronic portal, namely the mini One Stop Shop (MOSS). The scheme will allow taxable persons to avoid registering in each Member State of consumption and the application of the scheme will allow taxable persons supplying the above mentioned services to non-taxable persons in Member States in which they do not have an establishment to account for the VAT due on those supplies via a web-portal in the Member State in which they are identified. 

The MOSS scheme will be available to taxable persons established in the EU (Union Scheme) and taxable persons not established in the EU (Non Union Scheme). Under the Union scheme, the Member State of identification has to be the member state in which the taxable person has established its business. However if the taxable person does not have its business establishment in the EU it can choose any member state in which it has a fixed establishment. Under the non-Union scheme the taxable person is free to choose its Member State of identification.

Discover more: Mini One Stop Shop

Your Taxand contact for further queries is:
Zoe Kokoni
T. +357 22 699 222

Quality tax advice, globally

Taxand's Take

Taxable persons registered under MOSS in Bulgaria, Croatia and Greece will need to issue invoices to non-business customers. On the other hand in Cyprus businesses under MOSS will not need to issue invoices to non-business customers. It should also be noted that according to the report prepared on 26 June 2014 from the Commission to the Council it is recommended that member states refrain from the option to require an invoice on B2C supplies covered by the new place-of-supply rules.

Taxand's Take Author

Zoe Kokoni

Access Taxand's Take

Access Taxand's Take

Register to receive Taxand’s latest opinion on topical tax news