Telecommunications, broadcast or television, and electronic services provided to individuals:new rules of location
As of 1 January 2015 the new rules of location for telecommunications, broadcast and television, and electronic services provided to individual end consumers that are set out in Directive 2008/8/EC of the European Council, dated 12 February will come into effect.
That will mean the following new features:
- Change in the rules of location for services:as of 1 January 2015, services of this type provided to people who are not considered businesses or professionals acting as such for the purposes of taxes (end consumers), will be considered to be carried out in the Member State where said individuals are domiciled or where they usually live.
At present such services are taxed in the Member State where the service provider is established given that the special rule of location in the Member State of consumption is only applied when the service provider is a business or professional not established in the Community.As of 1 January 2015, this rule is extended to the service providers, businesses or professionals established in the European Union.
- Introduction of the Mini One-Stop Shop (MOSS) scheme, which will allow businesses established in the Community that opt into the scheme to be identified in only one Member State where they must submit tax returns for VAT corresponding to the telecommunication, broadcast and television, and electronic services provided to individuals in other Member States besides the one in which they are established.