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Response to changes in EU VAT rules

17 Jul 2014

From January 2015 new EU VAT rules will be implemented in relation to the supply of telecommunications, broadcasting and e-services to consumers. Taxand Ireland takes a look at new Irish legislation which will be enacted in 2014 to give effect to the New Rules and the MOSS system.

The current VAT rules regarding the supply of the Services by suppliers established within the E.U. to consumers (non-taxable persons) provide that the place of supply is the place where that supplier is located. If the supplier is established outside the EU, the place of supply is where the consumer is located. According to the new rules the place of supply of the Services will be the place where the consumer resides regardless of where the supplier is established. This represents a significant change in practice for the suppliers of these services; Revenue has cautioned that the suppliers need to assess and amend their billing, accounting and IT systems in order to be prepared for the New Rules.

These new rules will result in an additional administrative and compliance burden for suppliers of the Services. In order to ease this compliance burden, a new special scheme known as the Mini One Stop Shop (MOSS) will commence from January 2015. Registration with MOSS is optional for suppliers of the Services. Once a decision is made to use the VAT MOSS scheme it must be used across the board for all countries where supplies are made to non-taxable customers. Suppliers affected by the New Rules will be able to register for MOSS in Ireland from 1 October 2014 through the Revenue on Line Service.

Discover more: Irish responses to EU VAT rules

Your Taxand contact for further queries is:
Martin Phelan
T. +353 1639 5139

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Also published in Thomson Reuters' Taxnet Pro, 18 July 2014

Taxand's Take

Companies supplying the Services to non-taxable customers within the E.U. should assess their billing, I.T. and administrative procedures and make necessary amendments in order to ensure compliance with the New Rules.

Taxand's Take Author

Martin Phelan
Taxand Board member

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