This change will affect businesses providing telecommunications, broadcasting or electronically supplied services to non taxable or private customers in EU Member States.
Currently, these services are taxed where the business supplier is established. However, in light of this change, businesses will need to charge and account for VAT in the EU country where the customer belongs/where the service is consumed.
A “Mini One Stop Shop” (MOSS) will be introduced, giving both EU and non-EU businesses the option of VAT registering in just one Member State, through which they will account for VAT on supplies to their customers in other EU Member States. The alternative is for businesses to register and account for VAT (at the appropriate rate of tax) in every Member State in which they have customers.