Request on implementation of MOSS – Our member Hans-Martin Grambeck raised an interesting issue concerning the implementation of MOSS…
Request on implementation of MOSS – Our member Hans-Martin Grambeck raised an interesting issue concerning the implementation of MOSS.
The background
Companies which started to file MOSS returns for electronically supplied services on 1st January 2015 may find out that the allocation of revenues (and the VAT) between Member States is incorrect or incomplete at the moment the MOSS return is due. This finding is sometimes the result of IT and programming mistakes but may also be caused by the fact that Intermediaries / Payment Service Providers deliver the data too late. Furthermore, it seems that, in particular, the MOSS return for Q4 is a problem due to the earlier deadlines introduced for MOSS filings.
In Germany, most accounting staff are busy with finalizing the annual accounts (which makes it difficult to meet the MOSS deadline of 20th January.
In Germany businesses are used to filing the December VAT return by 10 Feb which means that the earlier MOSS deadline of 20th January is difficult to achieve. Last but not least it may also happen that in the course of closing the annual accounts for the previous year additional book keeping errors are brought to light.
We know that any corrections have to be made in the MOSS return for the period in which the original transaction was carried out. We also know that any additional VAT payment is due with immediate effect, whereas there is no certainty as to the time that it takes to recover overpaid VAT from the Member States.
From this background a company may – based on current knowledge and best practice – decide:
- To file the MOSS return at a later date (i.e. wait for additional information from Intermediaries and Payment Service Providers and wait until the workings with the annual accounts are finished) or file on the basis of estimated figures, and / or
- Include any corrections into the actual MOSS return due (as long as the correction will not lead to negative figures) which means that VAT is paid late.
The questions which arise
People in charge to do the MOSS returns do not know how other Member States deal with late filings and late payments if the company misses the filing / payment deadline or if the company decides not to backdate any corrections. However, this may be dangerous since other Member States may apply penalties / interests which are much higher than in the Member State of residence.
There is further lack of clarity with regards to the special MOSS system. Eg.
how quickly does the MSoI have to forward the declaration and the payments to the MSoC (which is a basis for the MSoC to determine if the filing / payment was late) – the regulations 815/2012 and 967/2012 do not appear to contain any details.
Finally, no one knows how the MOSS audits will work. This is why MOSS turns out to be a black box for the tax payers – you know what you put into it but you do not know the outcome…
Your input is appreciated
In my opinion the IVA could deliver valuable information to MOSS declarants by collecting information on the following three questions:
- Will the MSoC issue a tax number to a taxpayer declaring VAT via MOSS? This is important to know since on the basis of the tax number the MOSS declarant can contact the tax office to discuss specific questions regarding local rules and specific questions).
- Do you have any idea how long it takes your tax authorities to refund overpaid MOSS-VAT?
- What kind of penalties / interests will be applied by the MSoC in case of late submission of MOSS returns / late payment of MOSS VAT? (The answer should be given on the assumption that penalties / interest can only be assessed by the MSoC since MOSS returns do not affect tax revenues of the MSoI).
We received 5 replies from our members, representing 5 EU Member States. If you would like to receive the replies to this request or you want to share your opinion on this case about your Member state and still haven’t done so, please contact: [email protected]
