The European Commission has just released MOSS audit guidelines for EU member states.
Interestingly, the guidelines – which are not binding on EU member states – are followed by the initials of all the countries that have agreed to implement them. Thus far none of the guidelines are followed by the initials of all 28 EU member states. France and Italy, for example, have yet to agree to any of the recommended guidelines in relation to the auditing of Mini One Stop Shop (MOSS) registrations.
The European Commission has released additional guidelines relating to the auditing of MOSS declarations. Photo: Splashbase.com
MOSS audit system
The MOSS”) system enables an eMerchant business to register for VAT on all their B2C sales in the EU. The business must select an EU member state as its Member State of Identification (MSI). All VAT returns are then filed through a web portal with the MSI. The MSI will then distribute VAT to the Member State of Consumption (MSC) i.e. the EU member state where a business provided a B2C sale of an electronic service.
The additional information (available here) outlines what is required of the tax authorities in EU member states after an eMerchant business has registered with the MOSS system in the relevant MSI.
The guidelines include:
How to contact businesses as part of an audit
How to request information from traders as part of an audit
1. Contacting taxable persons
The Commission has provided the following guidelines for contacting businesses:
Initial contact should be routed through the MSI (18 EU member states have agreed to implement this guideline)
MSI should use their normal national procedures when contacting taxable persons registered for the EU scheme in the MSI. E-mail is to be used for initial contact (21 member states are agreeable to this guideline)
Where there is contact from the MSC, this should be initiated via the businesses’ contact email address (21 states agreeable)
2. Request information from traders
The Commission has also provided guidelines for requesting information:
- The best method for the exchange of information should be agreed between businesses and the tax authority and should depend on what electronic means is available to both. One possibility is to use a standard audit file for MOSS (SAF-MOSS), in xml format (21 EU member states are agreeable to this recommendation)
New SAF-MOSS auditing file
This latest European Commission missive ends with a note on the new SAF-MOSS auditing file: “As soon as it is ready, the SAF-MOSS (based on the information that businesses are required to keep by article 63© of Regulation (EU) 967⁄2012) will be made available on this site.”
It is now expected that details on the new SAF-MOSS file will be published in July.
Article 63c of the EU VAT Directive”) refers to the information required to be retained by the eMerchant. It includes the following:
The Member State of consumption to which the service is supplied
Type of service supplied
Date of the supply of service
Taxable amount indicating the currency used
Any subsequent increase or reduction of the taxable amount
VAT rate applied
Amount of VAT payable indicating the currency used
Date and amount of payments received;
Any payments on account received before the supply of service
Where an invoice is issued, the information contained on the invoice
Name of the customer, where known to the taxable person
Information used to determine the place where the customer is established or has his permanent address or usually resides
Note: Taxamo content is created for guidance only, please consult your local tax advisor.