Commonly referred to as VAT MOSS - The European Commission introduced the Mini One Stop Shop to ease the administrative burden placed on businesses required, by law, to comply with the change in the regulations for Business to Consumer (B2C) sales where the ‘place of supply’ has now become the 'place of consumption'.
VAT MOSS is available to businesses who sell digitally delivered services. It allows registered businesses to complete one EU VAT return a calendar quarter – instead of one for each country within the European Union (EU).
The business makes one payment to the nominated tax authority who then reallocates the appropriate amount of VAT to each country where a sale was completed.
To lower the cost of doing cross-border trade, simplify paperwork and to protect VAT revenue streams, the European Commission has announced that this method of calculating and accounting for VAT will be extended, commencing on 01/01/2021 and being completely in place by 31 December 2022, on all commerce within the EU - both B2B and B2C and for both digitally delivered and physical supplies. Click on each of the following images to see the details that summarise the postion and forthcoming changes: