Europe releases proposals on B2C EU VAT compliance regime
- Jan 14, 2012 | Richard Asquith
The European Commission has given new details of its proposed EU VAT compliance and reporting regime for supplies to consumers of electronic, broadcast and telecoms services. The new system will come into force in 2015.
Currently, there is a similar system for non-EU companies offering electronic services, such as software and App’s for download, whereby they need only obtain one VAT registration for the supply of services across all 27 member states of the EU.
The new guidelines cover areas such as registration requirements, record keeping, VAT returns and settlement of any VAT due. This will be done via new Mini One-Stop-Shop MOSS online portals. The VAT rate to use will be determined by the location of the customer, and the collected VAT will then be distributed amongst the appropriate countries through a clearing mechanism.