Even for the taxable persons that are not established within the territory of the European Union (EU), but supplying telecommunication services, television and radio broadcasting services and electronically supplied services to non-taxable persons (legal and natural persons not engaged in business) the place of delivery is considered to be the location (the state) where the service recipient (as an end consumer and a non-taxable person), is established, has a permanent address or place where he usually resides.
Taxable persons - providers of these services can use MOSS through the simplified procedure of a single contact point via web portal of any Member State, with no necessity to burden each and every individual state where these services will be provided.
- The importance of the MOSS special scheme
- The functionality of the MOSS special scheme
1. The importance of the MOSS special scheme
Providers who are not established within the territory of the EU which means that they are not established within the EU, have no establishment within the territory of the EU and are not registered for VAT in Slovakia or in any other Member State and who provide telecommunications services, radio and television broadcasting electronic services (*1) to customers (non-taxable persons established within the territory of the EU), may use MOSS special scheme via web portal of the Member State in which they choose to identify (Member State of identification). Thus they can avoid multiple registrations in each Member State of consumption (in a Member State of the customer) and fulfil their obligation to declare and pay tax imposed by a Member State of consumption. Its obligation to declare and pay the tax (which belongs to the Member State of consumption) they fulfil through a single submitted return via the portal of the Member State of identification.
Using of this special scheme is voluntary, but once the provider chooses it, he is obliged to apply it to all telecommunications services, radio and television broadcasting and electronic services, which he provides within the territory of the European Union.
When using MOSS all the communication proceeds only electronically and there is no signing of papers using electronic signature or conclusion of an agreement with the tax administrator about electronic delivery required. Electronic communication will be protected on the basis of the sign-in into the information system using a username and password.
(*1) e-services means the provision of websites, hosting the website, intra-maintenance of programs and equipment, supply of software and its update, supply of images, text and information and accessibility of databases, supply of music, films and games, including games of chance to win and gambling games, and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and broadcasts events and distance teaching.
2. The functionality of the MOSS special scheme
Registration and deregistration
Providers who are not established within the territory of the EU may choose to register in any Member State. Member States will make the registration available from 1 October2014 and if the taxable person registers during the 4th quarter of 2014 the registration becomes effective from 1 January2015.
If the provider fails to meet the conditions to apply this special scheme in the Slovak Republic, the Tax Office Bratislava issues a decision not to permit the application of the special scheme and the provider will not be registered.
On the other hand, when the registration is successful the provider may voluntarily decide for deregistration if he no longer provides the above mentioned services to non-taxable persons within the territory of the EU.
Tax return submission
Provider who uses some of the special scheme is obliged to electronically submit the quarterly MOSS VAT returns regardless of the fact whether or not he actually provides services, within 20 days of the end of the period to which the tax returns relates and within the same period the provider is also obliged to pay the related tax liability.
The MOSS VAT return includes the information about the services provided to customers in each Member State of consumption. Domestic provider shall include in the tax return all the telecommunications services, radio and television broadcasting and electronic services which he provided to customers within the European Union. The mentioned services provided to the domestic customers shall be included in a regular tax return. The Member State of identification shall divide VAT return according to Member State of consumption and will send the data to the particular Member State of consumption.
Tax liability payment and refund of taxes
Provider pays the due VAT to the Member State of identification. Provider pays the total amount of the submitted return. The Member State of identification shall generate a unique reference number for each MOSS VAT return and notifies this number to the taxpayer. This number is important because the taxpayer is obliged to indicate this unique reference number on its tax payments.
More detailed information as to the registration and deregistration, tax return submission, tax liability payment, refund of the overpayments, billing and keeping the evidence, can be found in Guide to the VAT mini One Stop Shop, published on the website of the European Commission,
Guide to the VAT mini One Stop Shop
and in national guideline: Provider’s manual before and after registration using MOSS, to be published as soon as possible.