VAT on BTE supplies provided to private consumers is chargeable in the State where the consumer is situated. Suppliers can register to the MOSS in order to be compliant.
In view of this, businesses providing such services would have two options in order to declare and settle the VAT due in each member state where such services have been provided, either by registering in each member state which would prove costly in terms of registration and compliance or by registering online onto the Mini One Stop Shop (MOSS) through the VAT Authority’s website in the Member State of Identification.
The MOSS is available to both EU and non-EU businesses under two different schemes, the Union Scheme for business which have either a business establishment or fixed establishment or both within the EU, and non-Union Scheme for businesses which do not have either a business establishment nor a fixed establishment in the EU. Under the Union Scheme the Member State of Identification is the member state in which the business is established, if applicable, otherwise the member state in which the business has a fixed establishment. In the event that there are fixed establishments in more than one member state, the business may choose one of them as the Member State of Identification. Under the Non-Union Scheme the business is free to choose any of the member states as the Member State of Identification.
Registration onto MOSS simplifies considerably VAT compliance as it would enable the business to submit a quarterly return declaring the VAT collected from the supply of such services in each member state at their respective VAT rates applicable at the time the service was rendered. This system will also enable the payment of the total amount of VAT due in one single transfer. The Member State itself will then see to the settlement of VAT with the other member states.
MOSS does not apply to the supply of BTE services in business to business transactions.