VAT on electronic services - Deregistration/Exclusion from the mini One Stop Shop Luxembourg

The use of the VAT Mini One Stop Shop (also referred to as "VATMOSS") for the declaration and payment of VAT on electronic commerce is optional for taxable persons.

Companies using VATMOSS can:

  • request their exclusion if:
    • they wish to voluntarily leave the scheme under which they are registered (Union or non-Union scheme);
    •  their electronic services are taxable in their country of establishment (Union scheme - valid for services performed from 1 January 2019 by businesses established in a single Member State to customers in other Member States and below a threshold of EUR 10,000 total annual value, excluding VAT, in the current calendar year or in the previous calendar year); 
    • they stop providing electronic services;
    • they want to change their Member State of identification;
    • they want to switch scheme;
  • be excluded by their Member State of identification if:
    • they no longer meet the conditions of eligibility for the scheme for which they signed up (Union or non-Union scheme);
    • their activities which were subject to the scheme are presumed to have ceased;
    • they do not comply with the rules (e.g.: meeting the declaration or payment deadlines) of the scheme.

Depending on the reasons for the deregistration or exclusion, taxable persons may be made subject to a period of exclusion during which they are denied access to one (or both) of the schemes.

Who is concerned

Each company registered with VATMOSS can request their exclusion or be excluded from the scheme.

How to proceed

Voluntary deregistration

Deregistration procedure

Taxable persons who continue to supply electronic services but who do not wish to use VATMOSS must inform Luxembourg (their Member State of identification) of their decision by electronic means at least 15 days before the end of the calendar quarter which precedes the quarter in which deregistration is to be effective.

Example: a taxable person who intends to be deregistered as from 1 July must inform their Member State of identification before 15 June.

Taxable persons who stop providing electronic services must inform their Member State of identification at the latest on the 10th day of the month following the cessation of activity.

Period of exclusion following deregistration

Taxable persons deregistering from VATMOSS in these 2 cases are excluded from the scheme they have opted out of in every Member State during 2 calendar quarters as from the 1st day of the quarter of the civil year following the date of cessation of activity.

From the date of deregistration onwards, VAT on electronic commerce has to be declared and paid in each Member State of consumption concerned.

Change of Member State of identification with or without a change of the scheme

Procedure for the deregistration and re-registration in another Member State

Taxable persons must deregister from VATMOSS in Luxembourg and re-register in the new Member State at the latest by the 10th of the month after the transfer or cessation of activity if they intend to:

  • either transfer the registered office of their economic activity from one Member State to another;
  • or cancel their establishment in the Member State of identification but continue to use the scheme in a Member State where they have another permanent establishment;
  • or change from the Union scheme to the non-Union scheme (or vice versa).

Special case: change of scheme without change of Member State.

If the change is related to a change of scheme (Union or non-Union scheme), the taxable person can deregister and re-register for VATMOSS in the same Member State.

Example: a taxable person with their registered office in Australia is identified by VATMOSS under the non-Union scheme in Luxembourg. The taxable person transfers the registered office to Luxembourg; they then have to deregister from the non-Union scheme in Luxembourg and re-register for the Union scheme.

Effect date for the change of Member State of identification

If the taxable person informs both Member States concerned at the latest on the 10th of the month following the change, the change of scheme or Member State of identification enters into force on the date of the change and no period of exclusion will apply.

Example: a taxable person is registered with the mini One Stop Shop in the United Kingdom.
Following a company restructuring, the registered office is transferred to France on 21 March.
The taxable person must therefore deregister in the United Kingdom and re-register in France no later than 10 April.
The effective date of deregistration in the United Kingdom and the re-registration in France is 21 March.

Period of exclusion

If the taxable person does not inform the Member States concerned within the legal deadlines, they will be excluded from the scheme during 2 calendar quarters and will have to declare and pay VAT in each Member State of consumption for every service supplied after the effect date of the change.

Exclusion by the Member State of identification

Exclusion procedure

The Member State of identification can exclude each taxable person from the scheme:

  • who does no longer meet the conditions required by the scheme (for example: the taxable person as an individual member of a VAT group since the identification of the VAT group in VATMOSS (Union scheme) is performed by the identification number assigned to this group and it is not possible for individual members of the group to register with their auxiliary identification number);
  • whose activities are presumed to have ceased (e.g.: they have not carried out any activity falling under the scheme during 8 consecutive calendar quarters);
  • who consistently does not comply with the rules of the scheme, i.e.:
    • if reminders concerning the declaration/payment have been sent to the taxable person for each of the 3 preceding calendar quarters and within 10 days of the reminder, the taxable person has:
      • either not filed his VAT return for each of the quarters concerned;
      • or not paid all the taxes due for each of the quarters concerned, except where the outstanding sums due are less than EUR 100 per quarter;
    • if one month after the reminder issued by the Member State of identification, the taxable person has not made available his transaction records to the Member State of identification or the Member State of consumption by electronic means.

The taxable person must keep the records for 10 years from the year during which the transaction was carried out, whether or not the taxable person continues to use VATMOSS.

If the taxable person is excluded from the scheme, they will receive an electronic notification from their Member State of identification.

Each Member State may request the exclusion of a taxable person but the final decision can only be taken by the Member State of identification. 

Period of exclusion

No period of exclusion will apply if the taxable person is excluded:

  • either because they no longer meet the conditions required by the scheme concerned;
  • or because the activities concerning electronic services are deemed to have ceased.

If the taxable person was excluded because they did not comply with the rules concerning a specific scheme, the taxable person may no longer use either of the 2 schemes in any Member State during 8 calendar quarters from the 1st day of the calendar quarter following the date of notification of the exclusion decision by electronic means.

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