EU-MOSS scheme changes
Since 2015, businesses who have made B2C supplies of broadcasting, telecommunications and e-services ("BTE") to EU based consumers have been required to charge VAT according to the member state where the supply is made. Rather than registering for VAT in each member state in which customers are located, businesses have the option to register for the mini one-stop shop ("MOSS") scheme. EU established businesses may use the 'Union' scheme with non-EU businesses using the 'non-Union' scheme.
Initially there was no threshold for registration, meaning that many micro enterprises were required to undertake VAT compliance which was disproportionate to the size of the business, however effective from 1 January 2019, a threshold of €10,000 (or local currency equivalent) is in place, meaning that businesses need only register for MOSS once EU sales exceed this level. Whilst sales are below this, VAT in their EU country of establishment is charged.
In addition, the EU has also implemented new rules around the requirements for evidence of the customers location. Previously, two pieces of non-contradictory evidence have been required but from 1 January 2019, only one piece will be required for businesses whose B2C BTE sales do not exceed €100,000 annually.