Do you offer digital services in the European Union? If so, you should be aware that starting January 1 2015 the place of taxation will be determined by the location of the consumer. This means that if, for example, your company sells an e -book to a private individual in Germany, you should present the German VAT, even if your business is located in Spain.
To save companies from having to register for VAT in each EU Member State, you may opt to use the newly created optional scheme, called “Mini One -Stop Shop” (MOSS). Opting for this new scheme implies a substantial simplification of VAT management, declaring from a single place on the website of the Tax Agency of each country, in addition to saving time and resources.
Companies wishing to opt for the MOSS scheme must register expressly on the web portal provided by the State Member (in Spain by submitting the 034 Form), and it will be effective starting next year.
What kind of services will be affected? The term digital services includes the services provided over the Internet or an electronic network that, by their nature, are essentially automated and require minimal human intervention, and have no viability outside the information technology, including:
- Website hosting and webpage hosting.
- Remote maintenance of programs and equipment.
- Accessing or downloading software and its updates.
- Supply of images, text and information and making available of databases.
- Accessing or downloading of music, movies, games, including games of chance and gambling, online magazines and newspapers, the digitized content of books and other electronic publications.
- Automated distance teaching dependent on the Internet to function and requires limited or no human intervention.
- Internet Service Packages (ISP) of information in which the telecommunications component forms an ancillary and subordinate part (i.e. packages going beyond mere Internet access and including other elements such as content pages giving access to news, weather or travel reports; playgrounds; website hosting; access to online debates etc.)
For any questions related to the Mini One-Stop Shop, do not hesitate to contact our team of experts.