The Mini One Stop Shop (MOSS)

The new VAT MOSS regime is already available in Spain. This scheme simplifies the Value Added Tax (VAT) formalities arising from digital services carried out with individuals within the European Union (EU).

Up to now, companies providing telecommunication, electronic and broadcasting services were liable to account for VAT in the member States where their customers were located, and additionally might become liable to register for VAT in those States. 

In order to simplify this, from now on, MOSS will allow companies established in the EU to register in just one EU Member State (“Identification State”) submitting a single VAT return for transactions with individuals of any EU State and making a single payment for output VAT. This scheme avoids registering in each State where transactions are carried out. Until now, MOSS was only available for those companies not-established in any EU Country.

In simple terms, if the business registers for MOSS in Spain, the company would only fill a single VAT return and make a single payment in Spain. Spanish tax authorities would split the mini One Stop Shop VAT return by State of consumption, and forward the details of payments to different consumption States’ tax authorities.

MOSS does not exempt companies to charge VAT (according to local VAT rates/rules) but exempts them to register for VAT and file VAT returns in those States.

Companies could ask for a refund of input VAT borne in consumption State(s) through filling a single return before the Spanish Tax Authorities. Alternatively, classical VAT refund scheme (to be claimed in each country) is also available.

Although this scheme will not enter into force until 1st January 2015, Spain has already made its registration procedure available to taxable persons from 1st October 2014.