VAT on digital services

The information given on this page only concerns selling to the final consumer (B2C), not to other businesses (B2B).

The Mini One-Stop-Shop (MOSS Scheme) allows you to supply the following services within the EU without the need to register in each EU country you supply to:

  • telecommunication services
  • television and radio broadcasting services
  • electronically supplied services

Even if your business is based outside the EU you can benefit from the scheme, as there are two types of schemes offered: those based within the EU (Union Scheme) and outside the EU (non-Union Scheme).

Some of the rules are different for the Union Scheme and the non-Union Scheme.

Member state of identification

To register for the scheme, you must choose a member state of identification.

Union scheme

This should be the EU country where your business is based (where the head office is located).

If your head office is located outside the EU and you have branches within the EU, you can choose any EU country where you have a branch established to be your member state of identification.

You can't include sales made to the member state of identification within the scheme; they must be accounted for using the normal taxation rules for domestic sales.

Non-Union scheme

This can be any EU country you choose.

Member state of consumption

The EU countries where you supply services to are known as member states of consumption.

Union scheme

When you supply a service, you must apply the rules (invoicing, cash accounting and bad debt relief etc.) from the member state of consumption.

Non-Union scheme

This can also include the country you have chosen as your member state of identification.

When you supply a service, you must apply the rules (invoicing, cash accounting and bad debt relief etc.) from the member state of consumption.

Member state of establishment

Union scheme

If your business has branches in other EU countries these are referred to as the member states of establishment. Supplies from these branches to a member state of consumption must also be included in the Mini One-Stop-shop tax return.

Supplies to the member state(s) of establishment cannot be included under the Union Scheme. They must be accounted for using the normal taxation rules for domestic sales.

Registration

You don't have to register for the MOSS Scheme, but registering allows you to supply certain services to EU countries without the need to register separately in each EU country.

If you do join, you have to apply the rules of the scheme for all EU countries that you supply to. You can't just choose to include some member states.

You can register for both of the schemes online via your member state of identification's portal. Once your registration details have been received and validated, they will be stored in a database and forwarded to the relevant EU countries.

Normally registration starts on the first day of the calendar quarter after you request to join the scheme. For example, if you join MOSS on 20 July, your registration will start on 1 October. If needed, you can bring this date forward as long as you inform the member state of identification before the 10th day of the following month. For example, if you are already trading and supply a service on 5 March, you must inform the member state of identification that you wish to join the scheme before 10 April. If this is done, all the services you supply from 5 March will be covered by the scheme.

E-commerce, distance and off-premises selling

For getting more information on selling goods via e-commerce or other means of distant selling, please refer here,

Legislation

Related authorities

Send us inquiry