Beginning from 1 January 2015 all Member States of the European Union are introducing VAT changes. New rules mainly concern supplies of electronic, telecommunication and broadcasting services made by non EU suppliers to private individuals and non-business consumers, which will be taxable in the Member State of the consumer or in the Member State where the services were used or enjoyed. To be able to avoid VAT registration in all Member States, suppliers will be allowed to use so called the Mini One Stop Shop (MOSS) simplification.
The consequence of the VAT 2015 changes is that all non EU companies providing electronic, telecoms and broadcasting services will be obliged to register its business for VAT at least in one of EU Member State.
The main purpose of establishing the regulation of Mini One Stop Shop by the EU was:
elimination of the obligation of the necessity of VAT registration in each country where the company sells its services,
introducing the simplification in calculating, preparing and filing VAT returns and settle out the VAT due,
introducing one point contact, which enable businesses operating in EU to manage all VAT issues across all EU Member States.
These changes should have positive economic impacts by minimising distortions to the location of the economic activity and increasing competition between large and smaller suppliers within the sectors affected.
Read more about the Mini One Stop Shop rules: