Confusion on EU VAT MOSS refunds

Tue 29th Dec 2015

Following the introduction on 1 January 2015 of the B2C digital services Mini One-Stop-Shop (MOSS) reporting portal, many companies have been experiencing problems with VAT refunds and corrections.

The MOSS returns enable a single, quarterly filing of VAT charged across the EU to consumers of online electronic services.

Many digital service providers are finding the response to applications for repayments of VAT to particular countries is facing months of delays. Since the repayments generally relate to under declarations to other states, which must be paid immediately, this can leave providers out-of-pocket for many months.

Corrections generally arise because providers are dependent on their platform providers to supply details of customers’ country of location so the VAT can be correctly attributed. However, detailed information can take several weeks to be issued by the platforms.