UK | Guilty of Violating EU MOSS Rules Commission Declares

On 19th July 2018, the European Commission (EC) issued a reasoned opinion to the United Kingdom, for its breach of EU rules on administrative cooperation, because of its failure to collect and transmit bank account details of taxable persons registered under the Mini-One-Stop-Shop scheme (MOSS).

Consequently, Member States wanting to refund businesses in the United Kingdom are forced to gather the required information themselves: a time-consuming and expensive practice which slows down VAT repayments.

If the United Kingdom doesn’t comply within two months, the case may be referred to the Court of Justice of the European Union.

The MOSS was launched on 1st January 2015, for suppliers of business-to-consumer electronic services, allowing them to avoid registration in each Member State of consumption and to account for the VAT due on these supplies with a single quarterly MOSS VAT return and corresponding payment, through a web-portal in their Member State of identification.