Trading within the EU

Q: I have been trading online, selling goods (e.g. mail order goods) to customers within the EU. I prepare my own personal tax return but am wondering if there is any other taxes or returns I need to worry about? Also I am thinking of supplying electronic services via the internet and keep hearing about this Mini One Stop Shop (MOSS), what is this?

20th March 2015

A: If you sell mail order goods to private (non – VAT registered) individuals located in the EU, the place of supply is usually where the transportation of the goods ends, i.e. where the private customer is located. This means you may be liable to register for VAT in that foreign country if you exceed the VAT threshold for that country. It is important to note that this rule does not apply if the value of the sales is below the relevant threshold of that EU country. In this case you should charge VAT in Ireland.   

Either way, you should seek foreign tax advice when selling into different jurisdictions.

The VAT MOSS, specifically applies to suppliers of telecommunications, broadcasting and e-services to private customers within the EU. From 1 January 2015 the supplier of these services are obliged to register for VAT in each EU country they sell to.

To simplify the obligations of suppliers of such services, an optional new special scheme known as the Mini One Stop Shop (MOSS) came into operation allowing business to submit returns and pay the relevant VAT due to Member States through the web portal of one Member State, instead of having to register for VAT in multiple Member States.

Again, foreign tax advice should always be sought in conjunction with your Irish tax advisor, when selling products/services over the internet.

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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