Austria: Electronically provided services – facilitating the tax liabilities
If the provider of radio and TV broadcasting, telecommunications and electronically provided services registers oneself into the special regime of one administration spot, the so-called Mini-One-Stop-Shop (further “MOSS”), the provider avoids the lengthy liability process to register for VAT in each Member State of the establishment of its end customers.
With effect from the 1st of January 2015, telecommunication services as well as radio and TV broadcasting and electronic services that are provided to non-businessmen in the EU from the point of view of VAT are always taxed in individual member states of the establishment of the recipient of the service. This legislative change was implemented to reach of more equitable distribution of taxes through taxation in the place of consumption and to eliminate competitive advantages. Before this legislative change, the taxable persons, who provided these services from a Member State of the EU with a lower tax rate, had a competitive advantage.
On the basis of this legislative adjustment, the provider of these services should register oneself for VAT in every member state, where he provides these services, and he should submit the tax return and return the tax there. If this provider of these services registers oneself to the MOSS system, the provider does not have to register oneself for VAT in every Member State. The Mini-One-Stop-Shop offers the possibility to register in one Member State only and to submit and return the VAT from all of services applying into this special regime via the tax portal of that state. If the provider provides other services in addition to these services that apply to this special scheme, the provider has to register oneself for VAT in that Member State.
Registration via FinanzOnline
The condition for registering into the MOSS scheme is to have a valid tax identification number on the side of provider. The provider has to submit the application on time to not be blocked for this registration. The provider of the services with a seat in Austria or a provider having an establishment in Austria but having a seat in a third state can register oneself into this scheme in Austria. The provider of services that has no seat or establishment in the EU can choose Austria as a Member State of identification. The provider of the services with a seat in the Austria or the provider from a third state with an establishment in Austria can electronically submit an application into the MOSS scheme via FinanzOnline or in other cases, it can be electronically submitted via the portal established for this purpose under the Federal Ministry of Finance (BMF). The tax period is quarterly per the calendar.
Via MOSS, it is possible to recognise and return the tax from all listed services provided to the non-businessmen in the Member States, if the provider does not operate an enterprise or has no establishment in the Member State. The tax period is quarterly per the calendar and it is necessary to submit the tax return by the 20th day of the month, following the end of the tax period.
The tax return states:
- tax identification number,
- the total value of provided services in the MOSS scheme,
- the VAT rate,
- the tax that should be returned – broken down according to the Member States and
- the total tax that should be returned.
The amounts in the tax return are presented in EUR. A tax return is also submitted in the case when the provider did not provide any services into the special scheme of one administration spot during the tax period (zero tax return). We will happily advise and help you with registration and help you meet all of the tax liabilities in accordance with the special scheme of the one administration spot!
Warning: If the provider’s service is sold via the portal (for example Appstore, electronic marketplace) of another provider and if the portal operator is considered a provider of services to the end customer, the provider then has the tax liability for the service provided to the end customer. The provider provides the service to the operator of the portal only.
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