MOSS invoicing requirements are revealed

Tue Oct 14, 2014

The EU Commission has just released crucial MOSS invoicing requirements detail for each EU member state ahead of the introduction of new VAT rules on January 1, 2015. MOSS invoicing

The European Commission has released crucial MOSS invoicing requirements.

These new rules affect the cross-border supply of digital services between a taxable person (supplier) and a non-taxable person (customer) in the EU. The new rules only affect B2C sales of these digital services.

The European Commission has also released a helpful MOSS point-of-contact list for each EU member state.

MOSS invoicing – country by country:

Below we give a summary of each EU member state’s invoicing requirements as regards the supply of broadcasting, telecommunications, and electronic services (note: the Commission definition of non-taxable legal persons are corporations, associations, etc., who do not charge VAT):

Austria

No obligation to issue an invoice

Belgium

No obligation to issue an invoice

Bulgaria

Taxable person supplying digital services to non-taxable person are not obliged to issue an invoice unless requested to do so by the individual.

Croatia

Invoice must only be issued in relation to supplies to other taxable persons or to non-taxable legal persons. However an invoice must be issued for all cash transactions with non-taxable persons.

Cyprus

Yes. A taxable person is required to issue an invoice for broadcasting, telecommunications and electronic services provided to a non-taxable person where that person belongs in the EU.

Czech Republic

No obligation to issue an invoice

Denmark

Yes. A taxable person is required to issue an invoice for broadcasting, telecommunications and electronic services provided to a non-taxable person. The invoice may be a simplified one. [The Ministerial Order may be amended and businesses established outside of Denmark and using the MOSS might not be required to issue an invoice].

Estonia

No obligation to issue an invoice

Finland

No obligation to issue an invoice to private individuals. Invoice has to be issued if services are supplied to non-taxable legal persons.

France

No invoice is required under French VAT legislation. However, under French commercial law any service that equals or exceeds €25 (including VAT) will require an invoice.

Germany

No obligation to issue an invoice. However, under German civil case law the supplier can be obliged to issue an invoice (notably when requested by the customer).

Greece

No obligation to issue an invoice. However, a retail receipt must be issued. As of January 1, 2015, the relevant receipt provisions will be abolished but the Greek Finance Ministry has yet to reveal the replacement provisions and no specific MOSS guidance has been issued as of yet.

Hungary

No obligation to issue an invoice. However, if the services fall under the exemptions set out in Sections 85 (1) and 86 (1) of the Hungarian VAT Act (i.e. education, gambling, and certain broadcasting services) the issuance of an accounting document is enough. If the consideration doe not exceed HUF 900,000 and the recipient of the service does not request an invoice, then the supplier can issue a receipt.

Ireland

No obligation to issue an invoice.

Italy

Yes. A taxable person is required to issue an invoice (Article 21 of the Italian VAT Act).

Latvia

No obligation to issue an invoice – unless one is requested by the customer.

Lithuania

Yes. A taxable person is required to issue an invoice. However, a cash register receipt may be issued as an alternative.

Luxembourg

No obligation to issue an invoice.

Malta

No obligation to issue an invoice.

Netherlands

Yes. A taxable person is required to issue an invoice to non-VAT taxable legal persons.

No obligation to issue an invoice to non-taxable legal persons who are private individuals.

Poland

No obligation to issue an invoice. However, an invoice should be issued is a customer requests one (this option does not apply to telecommunications and radio communications services).

Portugal

A taxable person is required to issue an invoice to non-VAT taxable legal persons (Article 29 (1) (b) of Portuguese VAT Law. However, taxable persons not established in Portugal and using MOSS to declare supplies to non-taxable persons established in Portugal are not obliged to issue an invoice for services supplied.

Romania

A taxable person is required to issue an invoice to non-VAT taxable legal persons. As an exception, where the supplier is required to issue a fiscal receipt and the beneficiary does not request an invoice, the issuance of the invoice is no longer mandatory.

Slovakia

A taxable person is required to issue a VAT invoice to non-taxable legal persons. There is no obligation to issue an invoice in case of supplies to private individuals (Article 72 of Slovakian VAT Act).

Slovenia

A taxable person is required to issue an invoice to non-VAT taxable legal persons (Article 81 of the Slovenian VATA-1 Act).

Spain

A taxable person is required to issue an invoice to non-VAT taxable legal persons.

Sweden

No obligation to issue an invoice.

United Kingdom

No obligation to issue an invoice.

Note: Taxamo content is created for guidance only, please consult your local tax advisor for professional advice.

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