Special VAT scheme for electronically supplied services (VAT MOSS)

At present there are many companies that operate electronically in the world, providing their services online, i.e. what the VAT Act refers to electronically supplied services.

Since last January 1st, 2015 the Spanish VAT Act, implementing the provision of the European VAT Directive, laid down in Articles 163.octiesdecies and onwards, a special scheme for telecommunication services, radio and television broadcasting and electronically supplied services.

In this regard, with the implemented changes, when these services are internationally supplied to recipients with the status of end consumer, the services shall be deemed to be placed for VAT in the country of residence of the consumer, this leading for the supplier to charge the VAT corresponding to each Member State of consumption, with subsequent formal obligations that this entails (application for a VAT id. number, VAT return filing, etc.).

However, given the geographical extent that this type of services may include, the European VAT Directive and the implementation of that rule in the Spanish VAT Act, establishes a special scheme known as Mini One-Stop Shop (MOSS), in order to simplify the formal obligations of the operator, allowing him to register for VAT purposes just in one EU country and, therefore, to comply with the VAT through a single special declaration in that territory.

The scheme has different applications and implications depending on whether the operator is an entity established in the EU or in a non-EU country. Thus, the operator established in the EU will be registered compulsorily in the Member State of establishment, while the non-EU operator can choose the Member State for registration.

Furthermore, the special VAT return for these services has specific rules for determining the taxable base, and the taxable person must also apply the VAT rate corresponding to each Member State of consumption of the services. In any case, the operator may not deduct any Input VAT through this VAT Form.

Diligens is perfectly aware of all the implications for VAT that this scheme involves, offering its clients, that may be involved in these transactions, an analysis of their transactions (qualification of services, place of supply, applicable rate, etc.) the implementation of the scheme in Spain, or in the most convenient Member State for those non-EU operators, and the assistance with the compliance services for submission of regular VAT returns.

Should you wish to receive further information as regard the VAT MOSS application, please send an e-mail to info@diligens.es

We will contact you without any obligation from your side.