The fundamental concept in VAT law is that VAT should be paid in the Member state in which
the supply takes place and this is in accordance with the principle
of taxation in the Member State of
destination.
In order for this to be achieved, there have been various
changes over the years described below.
Changes Taking Place
2015 Changes
In 2015, a major change took place whereby in respect of certain
services, being telecommunications, broadcasting and electronically
supplied services (TBE) provided to final consumers, the place of
supply shifted to where the customer is established. Due to this,
various suppliers had to register for VAT in the place where their
customers were established or opt for the simplification mechanism
and register for the MOSS (Mini One-stop Shop) system and pay the
VAT in the Member State of Identification which would, in turn,
distribute the VAT collected to all the respective Member States of
Consumption.
