There is been a tremendous increase in the E-Commerce business nowadays worldwide. The companies involved in the online sales of the goods and services are expanding their operations in many other countries as well. They are taxable too and has to pay the VAT returns but in a other way. Such businesses working in the EU countries have different system for the VAT payment known as MOSS (Mini One Stop Shop).
The businesses that supply online sales, telecommunication and broadcasting in the EU countries need to pay their returns through the MOSS system. It is optional for such businesses to register for the MOSS or else they can pay their VAT returns regularly. The MOSS system was regulated in order to make things simple and easy for the business associated with the electronic sales and services. The business providing their online sales and services need to register for MOSS in one of the EU country and has to pay quarterly MOSS towards the authorities.
The MOSS is only applied to the businesses providing the services of telecommunications and online product sales which do not have any establishment office in the EU. Before the introduction of MOSS in 2015, businesses use to pay their returns through the regular VAT system. The registration for MOSS is done online and all the MOSS payments can be done online by the company. As MOSS is optional tax scheme one register anytime for MOSS if they are providing the given service online. Once registered for MOSS the company has to make payments quarterly towards the authorities.