New information on VAT on Electronic Commerce (eTVA)

Concern : New information on VAT on Electronic Commerce (eTVA)

We want to inform you that as of January 1st, 2015, some rules on VAT on Electronic Commerce (eTVA) are subject to a change, especially those stipulations concerning the place of service.

  • What are the services involved?
    • Telecommunications Services,
    • Radio Broadcasting Services,
    • Televisions Services,
    • Electronic Services.


  • What are the Persons involved?

Persons concerned are Companies subject to VAT established or not established in the European Union that provide the services mentioned above, to Persons Not Subject to VAT, having their domicile or usual residence in the territory of the European Union and in which the companies do not have a permanent establishment and VAT number.

From January 1st, 2015, all of these services will be taxed in the Member State of residence of the Consumer.

  • What are conséquences ?
    • Service Providers must report and pay VAT in each Member State of Consumers.
    • The services will be taxable at the rate of VAT applicable in the country where consumers have their Residence.

In order to avoid that Service Providers should not be subject to administrative procedures in each country of the European Union, the tax authorities in each country have agreed to create a platform named « Mini One Stop Shop – VATMOSS ».

VATMOSS allows Providers to indicate a Member State as a point of contact for electronic identification, declaration and payment of VAT. The selected state will link with other Member States.

  • How to register with the VATMOSS?

Companies can already register on the platform and VATMOSS since 01st October 2014. To do this, Companies have to obtain a “LuxTrust Card”. If the Company does not have such a LuxTrust card, it will have to apply first for such card in advance because no application can be made without said card.

From the VATMOSS platform, the following services are offered:

  • Appointment of an agent to manage your business;
  • To follow the processing of declarations of the Company;
  • To follow the payments and transfers between Member States;
  • To access multiple views of statements (by country of consumption by country of establishment, …)

For recall, the Declaration through VATMOSS concern only e-services rendered to non-taxable persons established in a Member State of the European Union.

  • How is functioning VATMOSS platform?

Companies must deposit a quarterly VAT return including all amounts of services mentioned above.

In the case where the Company did not have issued any invoice for a quarter, it will be obliged to file a “nil” return.

The deadlines for filing are:

  • April 20
  • July 20
  • October 20
  • January 20

In case of absence of such declaration within 30 days after the end of the quarter, a reminder will be automatically issued by the State Member Identification. The following reminders will be issued by each Member State on the basis of statements already introduced.
When the VAT return is filed on the platform, the Company must pay VAT due, at the latest, on the due date for filing the tax declaration.

  • Exit VATMOSS :

The Company may leave the system VATMOSS on request. In this case, the Member State of identification will notify to the Company, the registration of its termination request and confirm this event with an expiration date.

The Member State of identification may also exclude a Company of VATMOSS system for repeated non-compliance with the rules in force.

Do not hesitate to come back to our office if your company is concerned by the new European Directive Application. We remain at your disposal for any further information requests made in writing.

C.G.E. Sàrl

Membre de l’Ordre des Experts Comptables


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