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What is the Mini One-Stop Shop (or MOSS)?
The Mini One-Stop Shop (MOSS) gives digital service merchants the option to register with a single tax authority in one EU member state where they can account for all of the EU VAT on their B2C sales.
There are 28 EU member states and each one has a different VAT rate. For example, standard VAT rates in the EU [as of September 2015] range from 17% in Luxembourg to 27% in Hungary.
MOSS was created to ease the administrative burden on merchants dealing with numerous member states for VAT collection and declaration.
With MOSS the merchant declares all of their EU VAT (per quarter) with the tax authority of one EU member state.
For EU-based merchants this will, typically, be their ‘home’ tax authority. Non-EU merchants without an establishment in the EU can select a member state tax authority for their MOSS registration.
The selected member state tax authority will in all cases be known as the member state of identification (MSI).
With the new EU VAT rules, if a merchant has end customers in a EU member state then they must apply the VAT relevant of that country.
For example, if a merchant has B2C sales of digital services in Germany, France, and the UK then they must apply German, French, and UK VAT on the supply of these B2C sales.
Registration with MOSS is via a web portal. Returns are made quarterly and processed via the MSI.
In return, the MSI will then disperse the relevant VAT collected to the other member states where the B2C sales occurred.
Additional information on MOSS can be found on the European Commission website.