This seminar is brought to you by Roly Pipe & Partners Roly Pipe CTA roly@thevatman.com
The Mini One-Stop Shop (MOSS) for taxpayers with a place of belonging in one Member State Current rules for place of supply of services Effect on certain businesses New rules with effect from 1 January 2015 Opportunity for businesses that make certain types of supply MOSS Potential for other businesses to take advantage the One-Stop Shop
Current rules for Place of Supply of services i.e. Member State to which VAT is payable Principal VAT Directive (EC) Default position B2B: Article 44 where customer belongs B2C: Article 45 where supplier belongs
Exceptions Services of intermediaries - Article 46 Where the underlying supply is made Services relating to immovable property Article 47 Where the property is located Passenger transport - Article 48 Where the transport takes place, proportionate to distance covered Freight transport Articles 49-52 Varies according to customer status
Exceptions Cultural, artistic, sporting, education, entertainment & similar activities - Articles 53 & 54(1) Admissions: where performed Ancillary services to legal or natural non-taxable persons where performance takes place Ancillary transport services (e.g. loading) - Article 54(2)(a) Where the service is carried out Unless the customer is registered in another Member State, in which case that Member State Valuation of movable property Article 54(2)(b) Where the service is carried out Unless the customer is registered in another member state, in which case that member state
Exceptions Restaurant & catering Article 55 Where carried out unless on ships aircraft & trains Short-term hiring of means of transport Article 56 Where the vehicle is put at the customer s disposal Restaurant & catering on board ships aircraft & trains Article 57 Point of departure
Exceptions B2C electronically supplied services supplied by persons with no place of belonging in the EC Article 58 Where the customer belongs Certain B2C services supplied to persons outside the EC Article 59 Where the customer belongs
Exceptions Use & Enjoyment - Article 59a Relates to services in Articles 44 45 56 & 59 Member States can opt to have these taxed where the use & enjoyment takes place B2C supplies of Telecoms & Radio/TV broadcasting Article 59b Member States can opt to have these taxed where the use & enjoyment takes place if this is within their territory
Impact if supplies made in more than one Member State Must register in each Member State What if value of supplies in a particular Member State is below registration threshold in that jurisdiction? Unless the taxpayer has a place of belonging in that Member State the registration limit does not apply effectively 1 in each Member State Must render returns in language of Member State in which supplies are made
New rules from 1 January 2015 New basic place of supply for B2C crossborder supplies of electronically supplied services revised Article 58 Where the supplies are consumed Effectively this means registration in each Member State where there is consumption by a non-taxable person The EC has standardised the format of VAT returns; each Member State is obliged to use the standard format
New rules from 1 January 2015 New basic place of supply for B2C crossborder supplies of telecoms & broadcasting revised Article 59b Where the supplies are consumed The default place of consumption is where the customer belongs if that is in the EU Member States no longer need to derogate to apply principle of use & enjoyment to telecoms
Opportunity for businesses that make certain types of supply MOSS Alternative to multiple registrations Each Member State is obliged to allow the facility of the Mini One Stop Shop (MOSS); each Member State must accept registrations from 1 October 2014. This facility provides for a single return to be rendered to one Member State The return accounts for output tax due to each Member State Each line must be completed in the currency of the Member State to whom the tax is due
Opportunity for businesses that make certain types of supply MOSS (2) Is there a choice? The taxpayer has the choice as to whether to take advantage of the facility or not The alternative is to register in each Member State in which supplies are made What is the significance of the word Mini? At present the only supplies that can be accounted for on a MOSS return are electronically supplied services including telecoms & broadcasting
Opportunity for businesses that make certain types of supply MOSS How do I know if I am making electronically supplied services? They are defined in Annex II to the Principal VAT Directive Will I be able to deduct input tax from my MOSS return? Only if it was incurred in the Member State in which you are registered; that from other Member States must be recovered from your own under the EU refund scheme - HMRC Notice 723A provides guidance
Opportunity for businesses that make certain types of supply MOSS What are the VAT periods to which a MOSS return applies? Calendar quarters Is there an alternative to calendar quarters? No
Potential for other businesses to take advantage the One-Stop Shop Is there a chance this facility might apply to taxpayers involved in other forms of supply? The Commission has stated that the intention is to phase in the facility for other types of business Logically this expansion would be expedited if there is sufficient demand from individual Member States Some member States notably Belgium seem to be ahead of the game
Summary Change in place of supply of electronically supplied services from 1 January 2015 Output tax accounted for on single MOSS return Input tax deductions for Member State of registration only Entry is optional Alternative is to register in each Member State
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