As from 1st January 2015, all EU Member States including Malta have implemented changes to the place of supply rules in a business to final consumer (B2C) supplies of telecommunications, broadcasting and electronically supplied services.

Until last year, such supplies made by EU businesses were subject to VAT in the country of the supplier. This will now change so that such supplies are subject to VAT in the country of consumption. The main consequence of this is that VAT becomes chargeable at the VAT rate applicable in the Member State where the customer resides. Therefore, each and every EU business providing such services to consumers residing in different Member States, the supplier would be required to apply VAT at the rate of each Member State where such customers reside. Under normal circumstances this would require multiple VAT registrations by the supplier in different Member States. The EU acknowledged that this situation would create a substantial administrative burden to businesses thereby hindering cross-border trading. EU Member States were therefore required to extend the Mini One-Stop Shop (MOSS) which up until 2014 applied to non-EU businesses, so that an EU business supplying such services would be required to keep one registration under the MOSS in the Member State of establishment.

These amendments are expected to have a substantial impact on EU businesses providing such services and therefore businesses involved in such sectors are encouraged to seek professional advice so as to ensure compliance. Malta’s remote gaming sector is expected to be impacted due to the fact that supplies provided by this sector fall within the ambit of electronically supplied services subject to such amendments.

Altima Malta can provide you with further assistance as to what services are affected by these changes, guidance to registration under the MOSS, and ongoing compliance. Contact us for further information on info@altimamalta.com