New EU VAT rules that will affect providers of digital services, such as telecoms, software and streaming, will arise on 1 January to simplify online processing of VAT returns based on consumer transactions in Europe.
In a scheme known as the Mini One Stop Shop (MOSS) that is being jointly promoted by IDA Ireland and the Irish Revenue Commissioners, tech firms will be able to submit VAT returns online in one country rather than across a multitude of countries.
The aim of the new MOSS structure is to simplify how suppliers of digital services across Europe meet their tax obligations.
The new structure could be a significant boon for Ireland’s Revenue Online Service (ROS), which has already set a world standard for how businesses and individuals submit tax returns.
MOSS will allow businesses to submit returns and pay the relevant VAT due to member states through the web portal of one member state, for example, Ireland’s ROS.
Otherwise, a business would be required to register and submit returns in several member states.
Businesses in the tech space have been able to register for MOSS via the ROS system since October.
Non-EU businesses may apply via Non-Union VAT MOSS Registration.
VAT image via Shutterstock