Commentary

V2.189E Union and non-Union schemes (Mini One-Stop Shop)—introduction

Part V2 Registration – deregistration

V2.189E Union and non-Union schemes (Mini One-Stop Shop)—introduction

Registration—Union and non-Union schemes (MOSS)

V2.189E Union and non-Union schemes (Mini One-Stop Shop)—introduction

Prior to 1 July 2003, the place of supply of electronically supplied services was, generally speaking, where the supplier of those services had established his business. With the advent of digitised services provided over the internet, this rule placed EU suppliers at a disadvantage vis-à-vis their non-EU competitors. As a result, Council Directive 2002/38/EC1, amending Directive 77/388/EEC (now Directive 2006/112/EC), was formally agreed on 7 May 2002. Its provisions were required to be brought into force by all member states on 1 July 2003. The amendment altered the place of supply of electronic services.

B2B supplies of electronic services

Under the revised rules, all supplies of electronic services to business customers (B2B supplies) are supplied where the customer belongs2, and are dealt with under the reverse charge provisions (see V3.231).

B2C supplies of electronic services

Supplies to EU non-business customers (B2C supplies) by persons who are not established in the EU are, with effect from 1 July 2003, also supplied where the customer belongs3, and taxed accordingly (ie at the applicable rate in the supplier's member

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