EU VAT 2015: Place of Supply Changes for e-services

ROTTERDAM, Netherlands - Oct. 28, 2014 - PRLog -- Rotterdam, the Netherlands, 28th of October, 2014

Currently, supplies of telecommunications, broadcasting and electronically supplied services made by EU suppliers to private individuals and non-business customers, otherwise known as B2C transactions, accumulate taxes based on the supplier location. As of January 1st, this changes to the place of consumption.

The impact of this change in law is such: suppliers of the services listed above will need to determine where their customers are established or usually reside and will need to account for VAT at the applicable rate in that Member State. Affected suppliers, therefore, may need to register for VAT in all EU Member states where they have customers. With no minimum thresholds in place, supplying e-services to just one customer in a member state may trigger a VAT registration requirement in that country.

However, as an alternative to the burdensome task of applying for VAT registrations in each member state where a supplier has customers, affected suppliers may opt for the Mini One-Stop Shop (“MOSS”) scheme. This scheme will be similar to the current Vat on E-Services (“VoES”) scheme, and will allow B2C supplies made in all 28 EU member states to be reported on a single electronic return.

Rotterdam Tax Automation firm Tytho B.V., has extensive experience spanning the field of tax determination solutions, including SAP, Oracle, Microsoft AX, and bolt-on engines like ONESOURCE and Vertex, as well as custom solutions such as ITL.

Some of the services Tytho can offer:
* Identifying the impact of this change in law on your business transactions;
* Helping to identify in your existing system B2C transactions;
* Constructing logic for the determination of customer location;
* Identifying necessary changes to all affected processes including calculation, invoicing and reporting;
* Assisting with the registration and setup of the Mini-One-Stop-Shop for your business.

Tytho is positioned to help VAT and IT managers representing multinational enterprises anticipate and execute the necessary changes to remain VAT compliant in the new year as EU 2015 changes take effect. Whether it’s native SAP or Oracle, a homegrown accounting solution, or a bolt-on tax engine like ONESOURCE or Vertex, our team has the practical experience and VAT background to help.