Change in VAT Rules for Telecommunications, Broadcasting & Electronic Services (TBE)

Businesses supplying telecommunications, broadcasting or electronic services (TBE) need to be aware of the upcoming changes regarding VAT and the place of supply rules which come into effect from 1 January 2015.

From 1 January 2015 the place of supply of TBE services to consumers will be the place where the consumer resides.  TBE service providers need to be aware of their obligations under the new rules.

New Rules

The supplier will be required to charge VAT at the rate applicable in the member state that the consumer is located and account for this VAT.  A business making supplies to numerous EU countries will be required to register and submit VAT returns in each EU country to which it provides the services to.

How MOSS Can Help You

To ease the administration burden that these new rules place on businesses a new scheme know as Mini One Stop Shop (MOSS) is being introduced.

Under the MOSS scheme a business can elect to submit VAT returns and remit VAT due to all member states through the web portal of a single member state.  That member state is then required to distribute the VAT to other member states.

A business established in an EU member state can elect to register for MOSS in that member state.  If a non EU established supplier has a fixed establishment in a member state it can elect to register for MOSS in that State.  Where a supplier is established outside the EU and does not have an establishment in any EU State it can chose a member state to register in.

Businesses should be aware that registering for MOSS is optional.  The system will be implemented from 1 January 2015 and businesses can register for the system from 1 October 2014.

What Questions Do You Have?

We are happy to help. Please post your comment below or call Eamonn Madden, Tax Manager at Cooney Carey, on 01 677 9000. Alternatively, send him an email: emadden@cooneycarey.ie

If this article helped you, please share it with other businesses.