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Supply of Services VAT

Supply of Services VAT

From January 2015, if you supply Broadcasting, Telecommunications, and/or E-services to a non-VAT Registered consumer or business in an EU Country then the tax rules and rate for the country where the service is supplied must be used. To avoid needing to register for VAT in each EU Country, you can use the VAT Mini One Stop Shop (VAT MOSS) online service to complete a single VAT return each calendar quarter covering these type of sales in any Member State in which you do not have a place of business.

You can set the required VAT Rates against each Country to which you supply service; however, you will need to manually create all the VAT Rates that you will need to use, and it is your responsibility to check the standard and reduced VAT Rates for each Country.

A checkbox is included on Stock and Price records, and Sales Order Processing (SOP) record Detail lines to indicate that the Place of Supply Rules apply. The SOP record detail line defaults to the Stock or Price record, but can be overtyped and will need to be set manually for Text-type detail lines, additionally, where the checkbox is set on a SOP Detail line, then the standard VAT Rate for the relevant Country (based on the Delivery Address) is automatically applied to the detail line, but also can be overtyped.

Additionally, a VAT Return option is available for the EU VAT MOSS Return.

Scenarios

From January 2015, this feature is designed to meet the following Rules for Telecommunications, Broadcasting, and Electronic (TBE) Services.

Services supplied by

to EU Consumer in EU Country 1

to EU Consumer in EU Country 2

to Non-EU Consumer

EU Supplier in EU Country 1

Taxable in EU Country 1

Taxable in EU Country 2

No EU VAT

EU Supplier in EU Country 2

Taxable in EU Country 1

Taxable in EU Country 2

No EU VAT

Non-EU Supplier

Taxable in EU Country 1

Taxable in EU Country 2

No EU VAT

Software changes

Country Record

System » [Currency] Countries

You are able to specify the relevant Standard and Reduced VAT Rates for each Country where you supply a TBE service so that the correct VAT Code and Rate are used on a SOP Detail line.

You need to manually create all the VAT Rates that you need to use, and it is your responsibility to check the VAT Rates for each country.

  1. Navigate to Country Records;

  2. Locate/ Insert the required Country record;

  3. From the ribbon, select the VAT Rates function from the Record group;

  4. Enter the Standard VAT and Reduced VAT Code. VAT Rates should be set up as EU Type U Rate.

Stock Record

Stock Control » [Records] Stock Records

You are able to flag a Stock Record to indicate that Place of Supply VAT Rules apply, so that the correct VAT Rate is used on a Sales Order Detail line.

  1. Navigate to Stock Records;

  2. Locate/ Insert the required Stock record;

  3. From the ribbon, select the EC Info function from the Record group;

  4. Tick the Apply Place of Supply VAT Rules checkbox. You must confirm that the correct VAT Rate is applied to any batched Sales Orders for this record.

Price Record

Selling » [Records] Price Records

You are able to flag a Price Record to indicate that Place of Supply VAT Rules apply, so that the correct VAT Rate is used on a Sales Order Detail line.

  1. Navigate to Price Records;

  2. Locate/ Insert the required Price record;

  3. From the ribbon, select the EC Info function from the Record group;

  4. Tick the Apply Place of Supply VAT Rules checkbox. You must confirm that the correct VAT Rate is applied to any batched Sales Orders for this record.

Sales Orders

Selling > [Transactions] New Order

This feature applies to all Sales Order transactions

You can set a flag on a Sales Order Detail line to indicate that Place of Supply VAT Rules apply so that the correct VAT Rate is applied to the Detail line. This flag is only shown if the Delivery Customer is EU Non-VAT Registered; the Default Values are as set on the Stock/ Price record, but can be overtyped.

  1. Navigate to Sales Orders, then

  2. Enter a New Order and complete fields as required through to the Detail:

  1. If Type is Text, tick the Apply Place of Supply Rules checkbox as required,

  1. The system applies the Standard VAT Code from the Country record based on the Delivery Address, or - if no Rate is found - you are prompted to ensure that the correct VAT Rate is selected,

  2. Overtype the Rate as required.

  3. On Saving/ Batching, the flag is saved against the Detail, and is used to determine whether the Detail line is included on the standard VAT Return or the VAT MOSS Return.

Please be aware that it is your default Company address that is printed on the Delivery Note.

VAT Return

System » [VAT] VAT Return » MOSS VAT Return

Any Sales Order Detail lines, where the Place of Supply Rules apply, are excluded from the standard VAT Return so that the same detail lines are not included on the standard and VAT MOSS VAT Returns. You are able to produce a VAT MOSS Return so that you can submit a single VAT Return for all the EU Countries in which you supply services.

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