From 1 January 2015, the place of supply for telecommunications, broadcasting, television and electronically supplied services rendered to private customers within the EU is determined by the customer's location. This means that such services are generally subject to VAT in the customer's country of residence. In addition to telecommunications, broadcasting and television services, this also affects providers of electronic services such as online texts, images, apps, databases, online software and similar offerings sold from Germany to private customers in other EU member states. These services are therefore subject to the new MOSS taxation procedure. To avoid requiring every online provider to register for VAT purposes in each country where they generate turnover in order to remit the applicable VAT there, a simplification rule — the MOSS procedure — has been introduced at the Bundeszentralamt für Steuern (BZSt, the German Federal Central Tax Office). If you register for this procedure with the BZSt (registration is already possible from 1 October 2014), you can use this portal to file quarterly returns for the VAT due in other EU member states without having to register in those countries or submit advance VAT returns there. The VAT owed to other member states is thus declared at the BZSt and remitted to it as a single aggregate payment. Once registered, you can use this BZSt online portal to submit and correct VAT returns, update registration data or, if necessary, deregister from the procedure.
Frequently asked questions
Frequently asked questions
Where are electronically supplied services to EU private customers taxed as of 01/01/2015?
Since 01/01/2015, the place-of-recipient principle applies to telecommunications, broadcasting, television and electronically supplied services to private customers in the EU. These services are therefore subject to VAT in the customer's country of residence. The supplier must accordingly apply the VAT rates valid in that country.
Which services fall under the MOSS scheme?
The MOSS scheme covers telecommunications, broadcasting and television services as well as electronically supplied services to private customers in other EU member states. Typical examples include online texts, images, apps, databases and online software. A key requirement is that the services are provided across borders within the EU to non-business customers.
What is the Mini One Stop Shop (MOSS) and what advantage does it offer?
The Mini One Stop Shop (MOSS) is a simplification scheme that allows businesses to declare and pay VAT owed in other EU member states centrally through the Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt). This eliminates the obligation to register for VAT in each individual EU member state and file separate returns there. The total VAT is remitted in a single payment to the BZSt.
From when and where can you register for the MOSS procedure?
Registration for the MOSS (Mini One-Stop Shop) procedure has been possible since 1 October 2014, allowing proper participation from the start of the new rules on 1 January 2015. In Germany, the competent authority is the Bundeszentralamt für Steuern (BZSt, Federal Central Tax Office), which provides an online portal for registration.
How often must MOSS returns be filed?
VAT returns under the MOSS scheme must be submitted quarterly via the online portal of the BZSt (Federal Central Tax Office). The same portal also allows you to correct returns, update registration data and deregister from the scheme if needed.