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EU cross-border VAT changes from next year

From 1 January 2015, there will be EU-wide changes to VAT charges on telecommunications, broadcasting and e-services such as apps and e-books. From this time, all such supplies will be subject to VAT in the customer’s country.

Relevant businesses faced the prospect of registering in every EU member state that they supply to, so there will now be a ‘Mini One Stop Shop’ operating in each EU member state to avoid this complication. Through the MOSS, businesses will be able to account for VAT via a single return in their own country.

Businesses are advised to register for MOSS in October 2014, and the EU has published guidance on how they will operate. The guidance addresses such issues as businesses that don’t have EU premises and businesses already registered in some EU states for other purposes.

The guidance also covers what information needs to be included on each MOSS return, VAT due for each member state and associated penalties, and invoice requirements.

If your business will be affected by the changes, now is the time to get your affairs in order to avoid confusion or penalties when the time comes. Your systems must be ready to cope with the changes, and you will also need to manage your pricing according to different VAT rates.

Here at St Matthew we are extremely familiar with EU cross border VAT issues, and we offer advice to companies trading between EU countries. International trade law can be very complex, and even more so when changes like this come in. Our team of international experts is here to help you through the maze and keep your business running smoothly. 

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