Access to web-portals and contact details of the relevant authorities
The information in the attached report provides details of whether foreign (in particular non-EU) service providers must or may appoint a VAT representative in the Member State where they are registered for the MOSS.
Anti-avoidance measures
Article 273 of Directive 2006/112/EC provides that Member States may impose other obligations which they deem to ensure the correct collection of VAT and to prevent evasion. These obligations are commonly referred to as tax avoidance measures.
The information in the attached report details whether each Member State has implemented an anti-avoidance provision in their domestic legislation that may directly impact businesses providing telecommunications, broadcasting or electronic services to private individuals established within the EU.
Appointment of VAT agents
The information in the attached report provides details of whether foreign (in particular non-EU) service providers must or may appoint a VAT representative in the Member State where they are registered for the MOSS.
Bad debt relief
Article 90 of Directive 2006/112/EC allows Member States to implement in their local legislation measures whereby a service provider may reduce the value of his taxable turnover with respect to a transaction where the customer has not or has partially paid the price of the service (bad debt relief).
The information in the attached report provide details as to whether Member States have implemented this optional rule in their domestic legislation and if yes, under what conditions.
Exemptions
Articles 132-135 of Directive 2006/112/EC provide for certain services to be exempt from VAT. However the scope of those exemptions may vary depending on the interpretation made by Member States of the relevant Article in the directive.
The information in the attached report provides details for each Member State regarding:
- whether an exemption applies with respect to e-learning activities and under what conditions;
- whether an exemption applies with respect to gaming and gambling activities and under what conditions; and
- whether any other exemption is applicable that could have an impact on the provision of telecommunications, broadcasting and electronic services provided to private individuals.
With respect to e-gambling activities, information is provided as to the VAT treatment of bonus points/credits earned as part of these activities and to the extent that those activities do not qualify for a VAT exemption in the country where the supply is, in principle, taxable.
Please note that the information contained in the attached report in relation to exemptions is for indicative purposes only and should be carefully considered on a case by case basis. We strongly recommend MOSS users to seek advice from the relevant tax authority or their advisor with respect to the VAT treatment applicable.
Invoicing obligations
The information in the attached report details whether each Member State imposes an obligation to issue an invoice with respect to telecommunications, broadcasting and electronic services provided to private individuals. Under 'Comment', some Member States have provided further clarifications.
Articles 219a of Directive 2006/112/EC provides for specific rules in relation to compliance obligations with respect to invoicing. Until 31 December 2018, the invoicing rules with respect to telecommunications, broadcasting and electronic services provided to private individuals are those of the Member State of consumption. As of 1 January 2019, the invoicing rules are those of the Member States of identification in case the supplier has registered for the MOSS to declare and pay VAT on his supplies of such services.
To be noted that more detailed information of Member States' rules on invoicing are available in the TIC (Tax Information Communication database) .
MOSS Registration Process
The information in the attached report provides details as to the MOSS registration process in each Member State, in particular, how to register for the MOSS and what information must be provided to the tax authorities of the Member State of identification.
Payments and reimbursement
Release from payment of insignificant amounts of VAT
Article 212 of Directive 2006/112/EC allows Member States to release taxpayers from the payment of VAT where the amount due is insignificant.
The information in the attached report provides details of whether each Member State has incorporated such relief in their domestic legislation.
As a Member State of consumption, do you require an additional claim before making a reimbursement?
In accordance with Article 61 of the VAT Implementing Regulation, corrections to the figures contained in a MOSS VAT return shall, after its submission, be made only by means of amendments to that return. When for a Member State of Consumption, such changes result in a negative amount of VAT, that Member State shall reimburse that amount of VAT to the taxable person.
Most of the Member States reimburse the VAT directly to the taxable person, on the basis of the information on the corrected MOSS return. However, in accordance with their national legislation, some Member States require an additional claim before making the reimbursement.
Reimbursement threshold as Member State of consumption
In accordance with Article 61 of the VAT Implementing Regulation, corrections to the figures contained in a MOSS VAT return shall, after its submission, be made only by means of amendments to that return. When for a Member State of Consumption, such changes result in a negative amount of VAT, that Member State shall reimburse that amount of VAT to the taxable person.
However, in accordance with their national legislation, some Member States do not refund insignificant amounts of VAT.
Penalties for non-compliance
The information in the attached report provides details of the penalty regime of each Member State. In particular, it details the penalty regime applicable with respect to:
- failure to register or late registration;
- non-payment or late payment of VAT;
- non-submission or late submission of VAT returns;
- incomplete or incorrect VAT returns; and
- failure to comply with invoicing or accounting obligations.
The penalties should apply in connection to transactions that are taxable in the relevant Member State in accordance with the place of supply rules as provided for under Directive 2006/11/EC.
Re-valuation of services
Article 80 of Directive 2006/112/EC allows Member States, in certain cases, to take measures to ensure that, in respect of the supply services involving family or other close personal ties, management, ownership, membership, financial or legal ties as defined by the Member State, the price of the service may be deemed to be its open market value.
The information in the attached report provide details as to whether Member States have implemented this optional rule in their domestic legislation and if yes, under what conditions including the Member State’s definition of “family or other close personal ties, management, ownership, membership, financial or legal ties”.
Stand-still Schemes
Articles 370-391 of Directive 2006/112/EC allow Member States – depending on whether they became a member of the European Union before or on or after 1 January 1978 – to derogate from some of the provisions of Directive 2006/112/EC (particularly with respect to certain exemptions) and continue to apply provisions that existed under their domestic legislation prior to the accession to the Union.
The information in the attached report provides details of any rules that each Member State applies under these Stand-still schemes.
Time of supply and Chargeability
Deferment of chargeability and cash accounting schemes
Article 66 of Directive 2006/112/EC allows Member States to derogate from the general principles of the VAT Directive regarding the moment when VAT becomes chargeable (i.e. the moment from when the tax authorities become entitled to claim the VAT from a taxpayer) and consider that, with respect to certain transactions or certain categories of taxable persons, VAT (instead of being generally taxable when the service is rendered) becomes chargeable:
a) no later when an invoice is issued;
b) no later when payment is received from the customer; or
c) where an invoice is not issued, or issued late, within a specified time no later than on expiry of the time limit for issuing an invoice imposed by the Member State, or if no such time limit has been imposed, within a specified period from the date of the chargeable event.
The information in the attached report provides details as to whether Member States have implemented those optional rules in their domestic legislation and if yes, what conditions apply.
Continuous supplies of services
Article 64(2) subparagraph 3 of Directive 2006/112/EC allows Member States to consider that in relation to the continuous supply of services over a period of time, the service may be regarded as being at least completed (i.e. the chargeable event may occur) at intervals of one year.
The information in the attached report provide details as to whether Member States have implemented this optional rule in their domestic legislation and if yes, what conditions apply.
Use and Enjoyment
Article 59a of Directive 2006/112/EC allows Member States to consider the place of supply of telecommunications, broadcasting and/or electronic services provided to non-VAT taxable persons (private individuals):
a) if situated within their territory, as being outside the European Union if the service is effectively used and enjoyed outside the Community; and
b) if situated outside of the European Union, as being situated within their territory if the service is effectively used and enjoyed in their territory.
The information in the attached report provides details of the use and enjoyment rules applicable in all EU Member States. The information outlines whether and how paragraph a) and/or paragraph b) of Article 59a have been implemented in each Member States’ domestic legislation.
A summary of whether each Member State has implemented use and enjoyment provisions in their domestic legislation is also included above.
VAT treatment of vouchers
The VAT treatment of vouchers and pre-paid telecommunications credits is yet to be harmonised throughout the European Union.
The information in the attached report provides high-level information regarding the VAT treatment of vouchers and / or transactions involving vouchers in each Member State; in particular as regards:
- what qualifies as a voucher;
- whether a distinction is made between certain types of vouchers; and
- when does VAT become chargeable and who is the person liable for VAT.
Please note that the information contained in the attached report in relation to the VAT treatment of vouchers is for indicative purposes only and should be carefully considered on a case by case basis. We strongly recommend MOSS users to seek advice from the relevant tax authority or their advisor with respect to the VAT treatment applicable.