What is the VAT Mini One Stop Shop?
The Ministry of Finance does not have time to rest, is still working on numerous tax changes in connection with the implementation of EU VAT regulations into national legislation. The new regulations are to be initially prepared by the government by the end of the second quarter of 2014. The legislator's urgent time is because the changes should be implemented by January 1, 2015 at the latest. special VAT procedure - Mini One Stop Shop (MOSS). What exactly is it and what is it? We explain below.
VAT Mini One Stop Shop - who will be affected by the changes?
The regulations that will come into force on 1 January 2015 will include changes in the place of supply of electronic, telecommunications and broadcasting services, which will make them taxable in the country of consumption.
The changes will only apply to transactions concluded with non-taxable entities.
Electronic services - current VAT settlement
The issue of VAT settlement on electronic, telecommunications and broadcasting services provided in the EU to non-taxable persons is currently regulated by Art. 28c of the VAT Act, according to which the place of their taxation is the place where the service provider has his registered office.
VAT Mini One Stop Shop - from 2015
As a rule, from 1 January 2015, electronic, telecommunications and broadcasting services will be taxable in the country of consumption. Therefore, the Polish entrepreneur will be obliged to charge the appropriate foreign VAT rate, i.e. the settlement of sales abroad.
It follows from the above that a Polish company would be obliged to register in every EU country where it would provide its services. Therefore, the European Commission met the entrepreneurs and introduced a simplified procedure for the settlement of this type of transaction, referred to as the Mini One Stop Shop or the one-stop procedure.
In line with the intention of the European Commission, a Polish entrepreneur will tax the service provided in accordance with the tax rate applicable in the consumer's country, but will pay this tax to the domestic (Polish) tax office. Therefore, it will not be obliged to register in each of the EU countries where its buyer would reside.
These transactions will be shown on separate declarations (supplementing forms VAT-7 and VAT-7K) intended for the settlement of services covered by the special VAT Mini One Stop Shop procedure. New declarations can only be submitted quarterly electronically until the 20th month following a given quarter.