Italy implements 2015 EU VAT digital services MOSS

Fri 3rd Apr 2015

Italy has implemented the 2015 digital services B2C VAT changes on the 1 April 2015, three months after the EU deadline of 1 January 2015.

The changes moved the place of supply for e-services to consumer from the country of the EU provider to the country of the consumer. This brings the rules for determining the country of taxation for digital services into line with traditional services which went through similar changes in 2010.

In order to avoid the need for providers to VAT register each country where they are selling to consumers, online portals – Mini One Stop Shops (MOSS) – were launched by each country.  VAT registered providers can now use these to declare sales across each EU country and make a simple, single quarter VAT return.

Italy missed the introduction of MOSS reporting when it failed to implement the necessary legislation in January.

The introduction of MOSS and the new place of supply rules was agreed by the EU member states in 2008.