If your business is established in Denmark and supplies telecommunication services, electronically supplied services or radio and television broadcasting services to private consumers in the EU, you can register your business for the MOSS scheme through the ‘EU-ordningen’ (the EU scheme) in Denmark. If your business is established outside the EU but also has a permanent establishment in Denmark, your business can also register for the MOSS scheme in Denmark.
The VAT rules on the supply of telecommunication services, electronically supplied services and radio and television broadcasting services to private consumers in the EU depend on whether your business has
- total sales of services for more than EUR 10,000 (outside Denmark)
- total sales of services for less than EUR 10,000 (outside Denmark)
If you supply services for more than EUR 10,000, you should declare the VAT in the home country of the consumers
Generally, VAT on telecommunication services, electronically supplied services and radio and television broadcasting services should be calculated, declared and paid in the country where the services are supplied. This means in the consumer’s country of residence.
Consequently, your business should be registered and declare and pay VAT in all the countries to which you supply your services if total sales abroad are more than EUR 10,000 within a calendar year.
As a result, the Mini One Stop Shop (MOSS) scheme will benefit your business. Read more about the reasons why under Easy declaration and payment of VAT with the MOSS scheme.
If you supply services for less than EUR 10,000, you can declare the VAT in home country where the business is established.
From 1 January 2019, new rules apply to businesses if their sales of telecommunication services, electronically supplied services and radio and television broadcasting services are less than EUR 10,000) in a calendar year. In such case, you should calculate, declare and pay VAT on the services in the country where the business is established (has its headquarters).
As a result, your business does not have to register for the MOSS scheme if you expect to supply services covered under the MOSS scheme for less than EUR 10,000 in the current calendar year (2019) and you also supplied services for less then EUR 10,000 in the past calendar year (2018). However, you may still register your business for the MOSS scheme. If your business is already registered for the MOSS scheme, you may also choose to remain so and continue to settle VAT according to the rules of the home country of the consumers.
If, you still want to declare and pay VAT in all the countries to which your business sell services subject to MOSS VAT, please note that your business will then have to declare and pay VAT in this way for at least two calendar years.
Sales exceeding EUR 10,000 in a calendar year
If, nonetheless, your business sales exceed more than EUR 10,000 in a calendar year, you should calculate, declare and pay the sales in the country where the services are supplied. In the calendar year when sales exceed EUR 10,000, the business is required to declare and pay VAT in the country where the services are supplied beginning with the delivery causing the business to exceed sales of more than EUR 10,000. As a result, the business may register for the MOSS scheme with effect from the time when its sales exceed EUR 10,000.
If you still choose to declare and pay VAT in all the countries to which your business sells MOSS services, you should note that it is a requirement that your business declare and pay VAT this way for a period of at least two calendar years. The same applies if you register your business for the MOSS scheme.
Easy declaration and payment of VAT with the MOSS scheme
The MOSS scheme allows you to register your business in one country and declare and pay EU VAT in that particular country. The advantage of the MOSS scheme is that your business does not have to declare VAT in each individual EU country, but you can do so to your local tax authority (in Denmark it is the Danish Tax Agency (Skattestyrelsen)).
Invoicing rules changed on 1 January 2019
Until now, businesses registered for the MOSS scheme have had to apply the invoicing rules in effect in the country of the consumer.
From 1 January 2019, however, the invoicing rules of the EU country in which the business registered for the MOSS scheme apply.