From 1 January 2015, new VAT localization rules will apply to telecommunication, radio-/tv broadcasting and electronic services rendered by VAT taxpayers to clients that are not VAT taxpayers. These services will be localized in the Member State of the client.
The main consequence of this change is that, as a rule, suppliers of these services will have to register, file VAT returns and pay local VAT in every Member State where their clients are located.
In order to avoid burdensome multiple registrations, filings and payments, an alternative optional single common registration and VAT payment device has been put into place: the so-called "Mini One Stop Shop" or "MOSS".
With the MOSS system, suppliers of the above-listed services are allowed to register only in the Member State where their (own) main establishment is located (or, if they are established outside of the EU, in the Member State of their choice), to file a unique VAT return (as regards the above-listed services) and to pay in this State the VAT related to these services, instead of having to do so in all the Member States of all their clients.
Businesses in Belgium rendering the above-listed services can register with the MOSS platform as from 1st October 2014.
For more information as regards the MOSS system, please see our "Pocket guide to VAT on digital e-commerce" available on our website http://www.twobirds.com/en/news/books/p/pocket-guide-to-vat-on-digital-e-commerce.