EU VAT MOSS ‘fraud’ was Irish Revenue error
- 16 August 2015 | Richard Asquith
It is unclear still how the error by the Revenue occurred as they would not normally have to deal directly with such companies – this would be the responsibility of the local national tax authorities. The Revenue will have been passed the details of the customers by UK's HMRC; but would not have the right to raise any tax assessments directly with the UK companies.
2015 EU VAT changes
From 1 January 2015, providers of digital services are required to charge the VAT rate of the country of their customer - rather than of their own country. To help simplify the compliance reporting process, the EU member states each created a Mini One-Stop-Shop (MOSS) online portal. Providers are now able to register with this portal, and make a single, quarterly return which covers all other countries where they are selling digital services to consumers. This eliminates the need to VAT register in each state where they are selling.