Compliance/Admin: Whilst it may be an administrative easement for some businesses, MOSS will create its own issues and these must be considered. For example; MOSS audits can stretch back 10 years creating onerous record keeping obligations; some businesses may require complex IT interfaces for data collection and there will be no threshold so all supplies will be captured, no matter how small. As such, other businesses may prefer to use their existing VAT registrations or create new ones across the EU. There will be benefits and drawbacks to each compliance option and businesses will need to evaluate these in advance of 2015.
Pricing/Margins: The change will affect the VAT charged to the consumer, and therefore the margins throughout the supply chain.
IT/Systems: The changes will also affect the way in which VAT is administered and reported, requiring changes to IT systems and processes.
A list of all the critical questions that businesses need to be asking themselves now can be found in our VAT 2015 e-brochure