(M)OSS and the EU VAT reform

Transcription

1 FIEBICH & PARTNERINNEN Audit, Tax, Consultancy Austria JPA Tax Club Barcelona 25 th October 2018 (M)OSS and the EU VAT reform Mag. iur. Natascha Branz

2 Content Action Plan on VAT MOSS status quo Telecommunication, television and radio broadcasting, or electronically supplied services (B2C) New VAT rules for E-Commerce Council Directive 2017/2455 2

3 Action Plan on VAT Commission in April 2016 Towards a single EU VAT area present system, which has been in place since 1993, is not in keeping with the times 3

4 Action Plan on VAT Goals VAT needs to be modernised Simplification of the system combat the growing risk of fraud cross-border fraud alone accounts for EUR 50 billion of revenue loss each year 4

5 MOSS (till 31 th December 2018) 5

6 Telecommunication, television and radio broadcasting, or electronically supplied services Since January 2015 B2B: place of supply = location of recipient (Reverse-Charge) B2C: place of supply = location of recipient Domicile, habitual residence Where is my customer located? presumptions 6

7 Telecommunication, television and radio broadcasting, or electronically supplied services Electronically supllies of services Basically without human action (besides maintenance work and preliminary work) Examples Hosting services Apps Supplying music, films, games via database Supply distance learning 7

8 Telecommunication, television and radio broadcasting, or electronically supplied services (B2C) Registration for VAT in all affected member states or Mini One Stop Shop (MOSS) One MOSS VAT return for all member states filed in via your domestic financial webportal AT: FinanzOnline DE: BZStOnline-Portal 8

9 Telecommunication, television and radio broadcasting, or electronically supplied services (B2C) AT AT 20% A B 19% 21% C D DE ES A files a standard VAT return for AT sales & A files a MOSS VAT return in AT: Including DE and ES sales. VAT is distributted from AT to DE and ES 9

10 EU-Scheme: Registration in the place of residence A taxable person can register in that state where that person has his central seat of economic activity or a permanent establishment in the EU. The taxable person cannot use MOSS for supplies made in any Member State in which he has an establishment. 10

11 Non-EU Scheme Free choice: A non EU taxable person can register to us MOSS, if he has not established ist business in the EU and he has no permanent establishment there and he is not obliged to or voluntarily registered for VAT purposes in the EU (besides VAT refund). The taxable person can choose any Member State to be the Member State of Identification (MSI). 11

12 MOSS Declaration and Payment Declaration Period = calendar quarter Also nil return No Annual declaration Payment Till 20 th day of the month following the declaration period 12

13 New VAT rules for E-Commerce 13

14 Legal basis Council Directive 2017/2455 amending Directive 2006/112/EC and Directive 2009/132/EC as regards certain value added tax obligations for supplies of services and distance sales of goods Adaptions to the digital age New rules to simplify VAT compliance for 14

15 Telecommunication, television and radio broadcasting, or electronically supplied services As of January 1 st 2019 crossborder e-services threshold B2C EUR p.a. Place of supply = location of entrepreneur Waiver possible Invoicing according the rules of the State of residence < EUR presumtion for place of supply only 1 (instead of 3) evidence(s) 15

16 New rules: Distance sales As of January 1 st 2021 Elimination of the thresholds pro EU-Member State NEW: cross-border threshold EUR E-Services + Distance Sales MOSS-declaration requirement: goods are dispatched from one central warehouse Transfer of the goods between EU-Member States is a intracommunity transfer and leads to a obliged VAT registration in Member State of arrival 16

17 Cross-border threshold: e-services and distance sales (B2C) AT AT 20% A B 20% C Distance sales 20% D DE ES Till 31 th December 2020: A files a standard AT-VAT return including: - AT sales - DE sales distance threshold is not exceeded - ES sales e-service threshold is not exceeded E-Services 17

18 Cross-border threshold: e-services and distance sales (B2C) AT AT 20% A B 20% C Distance sales 20% D DE ES Till 31 th December 2020: A files a standard AT-VAT (20%) return including: - AT sales - DE sales distance threshold is not exceeded - ES sales e-service threshold is not exceeded E-Services 18

19 Cross-border threshold: e-services and distance sales (B2C) AT AT 20% A B 19% C Distance sales 21% D DE ES As of January 1 st 2021: A files a standard VAT return for AT sales & A files a (M)OSS VAT return in AT: - Including DE and ES sales - VAT is distributed from AT to DE and ES E-Services 19

20 Thank you for your attention! This presentation was created solely for training purposes. We take no responsibility for any action done or missed out of this presentation. The explanations given are naturally of a general kind and can only give a survey over the legal situation and knowledge at that point of time. This is not meant to replace a professional consulting. 20

21 Sources Action Plan on VAT Aktion Plan Follow Up 10/2017 Council Directive 2017/