The Value-Added Tax (VAT) mini one-stop-shop (MOSS) scheme is a simplification measure. MOSS reduces the administrative burden and cost on business for the supply of telecommunications, broadcasting and electronic (TBE) services to non-taxable persons.
If you do not avail of the VAT MOSS scheme for such services, you will be required to register, charge and account for VAT in each Member State in which you make these business to consumer (B2C) supplies.
Union and non-Union MOSS
There are two schemes within MOSS:
- The Union scheme is for taxable persons that have an establishment within the European Union (EU), but are making supplies to Member States in which they are not established.
- The non-Union scheme is for taxable persons that have no establishment within the EU.
The rules relating to the operation of MOSS are almost identical for the Union MOSS scheme and the non-Union MOSS scheme. The only difference is the criteria used to determine where the business can register for MOSS.
Is the MOSS scheme optional or mandatory?
Use of the MOSS scheme is optional. However, if you opt to use MOSS you must use it for all of your B2C supplies of TBE services to Member States in which you have no establishment.
What if my turnover is below the VAT registration threshold?
The Value-Added Tax (VAT) registration thresholds that Member States apply to small business do not apply to businesses that are not established in the Member State.
With effect from 1 January 2019 a new place of supply threshold applies to the Mini One Stop Shop (MOSS). Under these new rules the place of supply of cross-border telecommunications, broadcasting and electronic (TBE) services remains in the Member State:
- where the supplier is established
- has his permanent address
- usually resides
up to an annual threshold of €10,000. Further details on this are included under the heading: How does MOSS work?
A business may be established in the State but may not be obliged to register for VAT in the State. If, however that business supplies TBE services to consumers in other Member States over this thresold of €10,000, it will be obliged to either:
- register and account for VAT in those Member States
- register for MOSS in the State.
Businesses who register for MOSS may do so without any obligation to register for VAT in respect of their supplies to consumers in the State. This is provided that domestic registration thresholds are not breached.
From 1 January 2019, there is no obligation on a business to register for MOSS if the annual threshold for TBE services to consumers in other Member States is or has not been exceeded. The business may however, in these circumstances:
- opt to register for MOSS subject to conditions
- remain in the MOSS system if already registered.
Alternatively, the business may voluntarily deregister from MOSS.
What happens if you do not have a VAT number?
When completing the MOSS registration process, the Corporation Tax number or Personal Public Service Number (PPSN)(as appropriate) of the applicant should be provided as an alternative to a VAT number. Any queries in relation to the registration process should be addressed to the MOSS helpdesk.
What kind of supplies can MOSS be used for?
MOSS can be used only in relation to the following supplies:
to a non-taxable customer in a Member State in which the supplier of those services does not have an establishment.
MOSS cannot be used in relation to the following:
- supplies to non-taxable customers in a Member State where the supplier has established his or her business or has a fixed establishment
- business to business supplies
- supplies of goods.
How does MOSS work?
Once you register your business for the scheme, you must account for the VAT due on all supplies of TBE services to non-taxable persons. To account for VAT on these supplies you must electronically submit, each calendar quarter, a VAT MOSS return and payment to Revenue.
You register for MOSS in one Member State (known as the Member State of identification) and electronically submit quarterly MOSS returns.
The MOSS returns should include your supplies of TBE services to non-taxable persons in Member States in which you have no establishment. These are known as the Member States of consumption. The MOSS returns should also include the VAT due to these Member States.
These returns, along with the VAT paid, are then transmitted by Ireland to the corresponding Member State(s) of consumption via a secure network.
An annual turnover threshold of €10,000 (exclusive of VAT) is introduced from 01 January 2019. This threshold is introduced to benefit micro-businesses which only occasionally supply TBE services to customers in other Member States. Up to this threshold, the place of supply of those services can be treated as the Member State where the supplier is established, has his permanent address or usually resides. For the threshold to apply, the supplier must be established, have his permanent address or usually reside in only one Member State.
The total value of the TBE services supplied to other Member States must not exceed €10,000 in the current and in the preceding calendar year. Where the supplier opts to apply the general place of supply rules (taxation in the Member State of the customer), they will be bound by this decision for two calendar years. Where the €10,000 threshold is exceeded, the general place of supply rules will apply. A taxable person already using MOSS, and whose total value of TBE services to other Member States is below the threshold of €10,000, can voluntarily deregister for MOSS as of 1 January 2019. However, a quarantine period of two calendar quarters will apply during which the taxable person will not be able to re-register for MOSS.
Further information is available in MOSS Legislation section of this website.
You are registered for distance sales of goods in several Member States. Can you use MOSS?
You can choose to account for VAT on your B2C supplies of TBE services in the domestic returns of each of those Member States. Alternatively, you can register for MOSS in your Member State of establishment in respect of those services. In this case, you must continue to submit returns in each Member State in respect of your distance sales. You cannot include distance sales of goods in your MOSS return.
The Member State in which you can register for MOSS depends on whether you are eligible for the Union scheme or the non-Union scheme.
You can only be registered for MOSS in one Member State at any time.
Union scheme registration
You can register for VAT MOSS by registering online. Businesses established in Ireland will register for MOSS through the MyServices section in their Revenue Online Service (ROS) account.
If you are eligible for the Union scheme, the following rules apply if:
- You have established your business in the European Union (EU). You must register for MOSS in the Member State in which you have established the business.
- Your business is established outside the EU and you have one fixed establishment in the EU. You must register for MOSS in the Member State in which that fixed establishment is located.
- Your business is established outside the EU and you have fixed establishments in more than one Member State. You can choose to register for MOSS in any one of the Member States in which you have a fixed establishment.
Non-Union scheme registration
Businesses established outside the EU with no fixed establishment within the EU can register using the non-Union registration.
If you are eligible for the non-Union scheme (that is, you have no establishment in the EU), you can choose to register for MOSS in any Member State.
What is meant by the Member State of identification?
The Member State of identification is the Member State in which you are registered for MOSS under either the non-Union MOSS scheme or the Union MOSS scheme.
What is meant by the Member State of consumption?
The Member State of consumption is the Member State in which your non-taxable customer is located (see new place of supply rules 2015). This is where the tax on the supply is due.
Can you change your Member State of identification?
If your business is established in the EU, the Member State where the business is established must be your Member State of identification.
If your business is not established in the EU and you choose your Member State of identification, you must remain registered in that Member State for two years from the date of registration. This applies unless your circumstances change so that you no longer meet the criteria to use that Member State as your Member State of identification.
Domestic supplies of telecommunications, broadcasting and electronic (TBE) services
You cannot include your supplies of TBE services to Irish customers in your MOSS VAT return if you are registered for the Union scheme in the State. Instead, you must include those supplies in your normal domestic VAT return.
Similarly, if you make supplies to customers in a Member State in which you have an establishment, you should not include those supplies in your MOSS VAT return. You must include them in the domestic VAT return of that Member State.
If you are registered for the non-Union scheme in Ireland and you make supplies to customers in the State, you must include those supplies in your MOSS VAT return.
What records am I required to keep for MOSS?
You must retain the following information:
- the Member State of consumption to which the services are supplied
- the type of services supplied
- the date of the supply
- any subsequent increase or reduction of the taxable amount
- the Value-Added Tax (VAT) rates applied
- the amount of VAT payable indicating the currency used
- the date and amount of payments received
- any payments on account received before the supply of the service
- where an invoice is issued, the information contained on the invoice
- names of the customer, where known
- the information used to determine the place where the customer is established, has his or her permanent address, or usually resides.
The information must be recorded in such a way that it can quickly and easily be made available by electronic means.
The records relating to MOSS returns must be retained for a period of ten years from the end of the year in which the supply was made.