(P) Summary chart Mini One Stop Shop (M1SS)
As, according to the tradition, the New Year always brings new changes, legislative bodies have found it appropriate for 2015 to bring changes in what concerns VAT. Thus, starting with January 1, 2015 the place of supplying electronic,…
Irina Chirileasa · Journalist
· Updated · 3 min read
As, according to the tradition, the New Year always brings new changes, legislative bodies have found it appropriate for 2015 to bring changes in what concerns VAT. Thus, starting with January 1, 2015 the place of supplying electronic, telecommunications, broadcasting and television services provided by taxable persons established in the EU and outside the EU to taxable persons established in the EU is considered to be in member state in which the beneficiary is established. This change comes to complicate the life of service providers because it requires more work, more documents to be drafted and several approvals to be received, so as to ensure that they are registered in every state of the European Union in which each beneficiary of its services is resident. In this context, a salutary idea is the introduction of the Mini One Stop Shop (M1SS) scheme. In order to avoid registering for VAT purposes of the providers of such services in all member states where the beneficiaries are established, the scheme Mini One Stop Shop (M1SS) will allow:
- registration of the providers in a single member state (Member State of Identification) for all electronic, telecommunications, broadcasting or television services provided to non-taxable persons established in the EU;
- submission of statements;
- payment of VAT owed to the member state in which the beneficiary is located (Member State of Consumption);
The use of this scheme is optional, with the possibility to register since 01 October 2014. If the providers of such services are not registered in M1SS, then they have to register in each of the states in which the beneficiaries are established. In the following, I will try to provide some details about what the aplication of the Mini One Stop Shop (M1SS) scheme means. 1. Registration in the Member State of Identification There are two schemes:
- EU scheme: Member State of Identification = the state in which the provider has established the economic activity / has fixed establishment;
- non EU scheme: Member State of Identification = any Member State;
2. Submission of VAT statements
