VAT on electronic services - Declaration via the mini One Stop Shop Luxembourg

Each business operator or taxable person who has decided to use the point of single contact for VAT ("VAT mini One Stop Shop", called "VATMOSS") has to submit a VAT return for each calendar quarter concerning the provision of services in the fields of telecommunication, radio broadcasting and television or electronic services.

The VAT return submitted via VATMOSS lists the services provided by the operator to private consumers in each Member State of consumption.

It enables the Member State of identification to allocate the amounts of VAT due in each Member State of consumption.

Who is concerned

Business operators (company, partnership or sole trader) who have chosen to use VATMOSS have to declare their services concerning telecommunications, radio broadcasting and television or electronic services which were provided to non-taxable persons (private consumers) established in EU Member States where the service provider is not established (no registered office, no permanent establishment).

Union scheme

A business operator with an establishment in an EU Member State who has chosen the Union scheme (sometimes referred to as "EU scheme") will use VATMOSS to declare VAT on all electronic services supplied to consumers in other EU Member States (where said operator does not have an establishment):

  • the VAT return must be submitted by the establishment in the Member State where it is registered with the mini One Stop Shop;
  • the same establishment has to submit the VAT returns for all its other permanent establishments in the EU.

However, if the business operator has a permanent establishment in the consumer's Member State of residence, he will not declare the services provided in the same Member State via VATMOSS but via the national VAT return system and include all the services supplied in said Member State:

  • this includes the services provided by the permanent establishment itself;
  • and the services provided in said Member State by every other of his establishments.

Example: a business operator has his registered office in Luxembourg and several permanent establishments in France and Belgium. The operator is registered with the mini One Stop Shop (Union scheme) in Luxembourg.

The operator is providing telecommunication services:

  • from his registered office (in Luxembourg) to private consumers residing in:
    • France (where the operator has a permanent establishment);
    • Germany (where the operator has no permanent establishment);
  • from his permanent establishment in Belgium to private consumers in:
    • France (where the operator has a permanent establishment);
    • Germany (where the operator has no permanent establishment).

The operator has to declare:

  • all services provided in Germany via the mini One Stop Shop in Luxembourg;
  • all services provided in France have to be declared by the permanent establishment in France via the French VAT return system.

Non-Union scheme

If the business operator does not have a permanent establishment in an EU Member State and has chosen the non-Union scheme (sometimes referred to as non-EU scheme), he has to declare VAT via VATMOSS on all electronic services supplied to private consumers in the EU (including the services provided in the Member State of identification).

Deadlines

Declaration deadlines

Deadlines to be complied with

The taxable person has to submit a VAT return via VATMOSS each quarter, within 20 days of the end of the quarter, i.e. at the latest:

  • on 20 April, for the 1st period from 1 January to 31 March;
  • on 20 July, for the 2nd quarter from 1 April to 30 June;
  • on 20 October, for the 3rd period from 1 July to 30 September;
  • on 20 January, for the 4th quarter from 1 October to 31 December.

The taxable person cannot submit the VAT return via the mini One Stop Shop before the end of the quarter concerned.

Non-compliance with the deadlines

In the event the taxable person does not file the VAT return within the legal deadlines, the Member State of identification sends a first reminder by electronic means on the 30th day after the end of the deadline for declaration.

If the taxable person is given a reminder for 3 consecutive quarters and fails to file the VAT return within 10 days of the dispatch of each of the reminders, he will be excluded from the scheme.

Each Member State of consumption concerned is responsible for sending subsequent reminders and sets the fees, late payment interests and fines related to the late filing of VAT returns.

The reminder letters do not exempt the taxable person from having to file the declaration electronically with the Member State of identification.

Payment time frames

Compulsory deadlines

Taxable persons must pay VAT in the Member State of identification at the latest on the due date for the filing of the VAT return. The payment becomes effective when the amount arrives on the bank account of the Member State of identification.

Example: a taxable person files the VAT return via the mini One Stop Shop on 10 April for the 1st quarter, the payment must be made by 20 April.

Non-compliance with deadlines

If the taxable person has not paid the full amount within the legal time frame, the Member State of identification sends a first reminder by electronic means on the 10th day after the payment deadline inviting the taxable person to complete the payment of the tax due.

If the taxable person receives a reminder at the end of each of the 3 preceding quarters and fails to meet the payment within 10 days of the dispatch of each of the reminders, the taxable person will be excluded from the scheme (unless the outstanding amount < EUR 100 per quarter).

Each Member State of consumption concerned is responsible for any subsequent reminders and sets the fees, late payment interests and fines related to the late payment.

Following the reminders, the taxable person must pay the VAT due directly to the Member State of consumption (and not to the Member State of identification who will not redistribute the payment but who is only responsible for reimbursements to the taxable person).

How to proceed

Declaration of VAT via the mini One Stop Shop

Taxable persons (EU or non-EU members) must file their declaration of provision of services regarding telecommunication, radio broadcasting and television or electronic services via the VATMOSS platform with their Member State of identification.

When the taxable person choses Luxembourg as their Member State of identification, they may transmit their declaration via VATMOSS with an XML import file.

Content of the declaration

The taxable person must indicate the following in their declaration:

  • the VAT number (Union scheme, e.g.: LU12345678) or the individual VAT identification number (non-Union scheme, e.g.: EU442456789);
  • the total value in EUR of services provided during the taxable period for each Member State of consumption where VAT is due;
  • the amount of tax due broken down by tax rate;
  • the applicable VAT rates;
  • the total amount of tax due.

Some of the Member States who do not have the Euro may require the VAT return to be completed in their national currency. In the event where other currencies were used to pay for the provision of services, the amounts must be converted into Euros before filing the VAT return. The exchange rates which must be used are the ones which are published by the European Central Bank on the last day of the quarter concerned.

The taxable person under the Union scheme must indicate for each EU Member State in which they have a permanent establishment:

  • the total value of services provided by each of the permanent establishments, broken down by Member State of consumption;
  • the individual VAT identification number or, failing this, the tax reference number for each of the establishments.

If during a quarter, the taxable person has not provided any services in the EU subject to declaration in the mini One Stop Shop, they have to submit a "nil" return by indicating in the VAT return: "montant total de la TVA à payer = zéro" (amount of payable VAT = zero).

Payment/Repayment of VAT

Payment of VAT due

When the taxable person has filed the VAT return via the mini One Stop Shop, they will receive a unique reference number for the VAT return.

They must pay the full amount of VAT indicated in the VAT return and use the unique reference number which was allocated.

The Member State of identification will distribute the tax collected to the different Member States of consumption concerned.

In Luxembourg, the payment must be made in Euros on the bank account of the administration.

Repayment of overpaid VAT

In principle, the Member State of identification repays each business operator for each VAT return where taxes have been overpaid. However, in the event where the amount of VAT has already been paid to the Member States of consumption, these States will repay the taxable person directly.

Correction/amendment of the VAT return

The taxable person can correct the VAT return electronically via VATMOSS, within 3 years after the date of the filing of the initial declaration (e.g. in case of an unrecoverable claim).

Corrections may not be charged to later declarations.

The taxable person must forward the corrections and the payment of the additional amount which could be due to the Member State of identification who will transmit it all to the Member States of consumption concerned.

If the correction implies a repayment, the corresponding amount will be transferred to the taxable person by the Member States of consumption concerned.

Certain Member States of consumption accept corrected VAT returns even after 3 years. The corrections do not concern the mini One Stop Shop and the taxable person must directly contact the Member State of consumption concerned. 

Who to contact

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