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VAT MESS on goods now!

Today's press release from the EU Commissioner Pierre Moscovini is good news for some but not all...

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As regular visitors will be aware since 1 January 2015 new rules applied to supplies of telecommunications, broadcasting and e-services which required clients providing those services to either register in each country in which the regulations apply or to use a new device, a Mini One Stop Shop or MOSS.  After two years of hard campaigning some concessions are to be introduced by the EU (good news I hear you say) but in the long run there will also be an impact on suppliers of goods and services other than e-services.  Will your clients be ready and do they already know that this proposal has been on the cards for some time now?

What will it mean?  Below you will find a link to the full text of the press release issued today but in summary:

There will be a de minimis limit for ALL cross border sales of €10,000 above which registration will be required through a One Stop Shop covering ALL goods and services within the EU.  This is good news for e-services where at the moment there is no de minimis at all but very bad news for suppliers of goods, where at the moment the limit is €35,000 in each member state (not €10,000 across the whole of the EU).  It is also bad news for suppliers of services on a B2C basis where supplies take place in the home country - they will now also be included in these new rules - so that's most people registered on this site then.

There will be a simplification for record-keeping where turnover is below €100,000 along the lines currently put in place by HMRC on an unoffocial basis.

The low value import limit of €22, which we suspended for transactions from the Channel Islands will be abolished.

Under the current plans it seems that provided each member state agrees the new rules for services will be in place as early as 2018 and goods by 2021.

So if you took no active part in the VAT MESS debate you now need to get yourself and your client's in gear for Pierre Moscovini's promise of a new system reducing administrative burdens by 95% - and we know where we've heard that sort of nonsense before.  Do your clients especially with low value exports of goods need to start banding together now, as the e-service traders did on Facebook, leading to the concessions, or will you and they sit back and complain when it it suddenly hits you?

This won't be stopped by Brexit by the way as the supplies will all be deemed to take place in the EU and so you'll need to register with another country's MOSS - I suppose at least if you choose Ireland the language will be familiar... READ THE PRESS RELEASE NOW (he shouted)

http://europa.eu/rapid/press-release_IP-16-4010_en.htm

 

Replies (4)

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Teignmouth
By Paul Scholes
01st Dec 2016 14:19

Thanks for this Paul, very helpful as always.

I'm pretty neutral on it, it was always the intention that VAT MOSS on e-services was just the first stepping stone, so it's not really a big surprise but I do acknowledge that, as with MTD, this is another nail in the coffin of poor accounting systems and so will generate some grief for those still wedded to them.

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By BigBadWolf
08th Dec 2016 16:40

Why doesn't the govt. hurry up with BREXIT an invoke article 50 already ... I can't wait for the end of Intrastats and MOSS and the like.

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Replying to BigBadWolf:
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By Paul Soper
08th Dec 2016 21:18

Whilst Brexit will mean the end of Intrastat it means that the information you put on the Intrastat return will now have to be on documentation that accompanies the goods over the border - I assume you are too young to remember what a pain this was before the single market came in in 1993. As for VATMOSS - sorry - the same rules will still apply (unless you want a double liability with no double tax relief!) the only difference is that we will have to join a non-union scheme - I suggest the Irish one because you will be able to deal with it in English. I really hope I am wrong and the advocates of Brexit are right but...

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Replying to Paulsoper:
Teignmouth
By Paul Scholes
09th Dec 2016 08:56

"but......" indeed

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