What you need to know if you supply telecommunications services, broadcasting services or electronically supplied services.
Telecommunication services are fixed and mobile telephone services, Internet access, etc.
Radio and television broadcasting services are programmes broadcast on radio and television networks and live broadcasts on the internet broadcast simultaneously with their broadcast on radio or television.
Services provided electronically include software and updates, website development and maintenance, e-book purchases, online periodical subscriptions, downloads of apps, games, music and movies, web hosting, distance learning with minimal human intervention, and more.
Supplies of telecommunications services, radio and television broadcasting services and electronically supplied services by a taxable person to recipients who are not taxable persons established in another Member State shall be taxed in the Member State in which the recipient of the service is established.
Where the recipient is a taxable person, the value added tax is levied in the Member State of the recipient under the mechanism of commutation.
As the law provides for the taxation of these services to be carried out in the Member State of the final consumer's (non-taxable person's) location, this would mean that suppliers of this type of services would have to register in each EU Member State where they supply such services.
In this regard, the law provides for registration under the special "Union regime" through the use of mini-One-Stop-Shop online service (MOSS), which is voluntary and facilitates the suppliers of these services in the administration of value added tax.
If a taxable person chooses to apply the MOSS, it shall register in the Member State where it has established its business.
The date of registration shall be the first , day of the quarter following the calendar quarter of the application. However, where the first supply of a service takes place before the date of submission of the application, the date of registration shall be the date of the first supply, provided that the taxable person has submitted an application for registration by the 10th day of the month following the month of the first supply at the latest.
The return shall be filed electronically by the 20th day of the month following the calendar quarter to which it relates. Where the 20th of the month is a non-working day, Article 22(7) of the Tax Code shall not apply.
The taxable amount, the taxable event and the chargeability of the tax in respect of such services shall be determined in accordance with the legislation of the Member State of identification.
The rate of tax on supplies is the rate applicable in the Member State of consumption.
The legislation of the Member State of identification shall apply to the documentation of supplies of electronic services.
A person registered under the MOSS is obliged to keep an electronic register of the supplies of electronic services made by him.
The electronic register shall contain the following information:
-Consuming Member State
-Type and quantity of service provided
-Date of the taxable eventNumber and date of the invoice, if any
-Taxable amount, specifying the currency used
-Increase or decrease of the taxable amount
-Tax rate applicable
-Amount of tax, indicating the service used
-Date and amount of payments received and method of payment
-All advance payments
-Name, postal address and e-mail addresses of the customer, where known
-Information used to determine where the customer is established or where the customer's permanent address or habitual residence is.
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