New EU VAT Rules Due In January 2015
A new VAT Directive - adopted by all 28 EU member states in October 2013 - will be introduced in January 2015. The key change enshrined in the 2015 Directive is that suppliers of broadcasting, telecommunications and electronic services in the EU must charge VAT based on the location of the end consumer.
The VAT Directive only refers to business to consumer (B2C) sales. Business to business (B2B) sales are not affected. Most businesses supplying digital services will be affected.
of the more important measures introduced through the rule change is
the Mini One Stop Shop (or MOSS). The rule change will mean that
businesses must know where all their B2C sales take place in the EU:
you need to know where your end consumer is located.
The MOSS will allow businesses to account for VAT due on their EU supplies via a web-portal in the Member State in which they are identified. This scheme is optional.
If a business decides not to register with the MOSS system then they will have to declare the VAT due in each EU Member State in which they have digital sales. That means they will have to familiarise themselves with - potentially - all 28 tax jurisdictions in the EU.
Know More About New EU VAT Rules AT