Taxation and customs union

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A taxable person who opts to use the mini One Stop Shop is required to register in the Member State of identification. For the Union scheme this is the Member State in which the taxable person has established its business.

If a taxable person has not established its business in the EU, it is the Member State in which it has a fixed establishment. If the taxable person has more than one fixed establishment in the EU, he is entitled to choose one of those Member States to be the Member State of identification. This is the only situation in which a taxable person can choose the Member State of identification under the Union scheme, and the taxable person is bound to that decision for the calendar year in which it makes that decision, plus the two following calendar years.

In all cases for the Union scheme, the taxable person will be identified for the mini One Stop Shop with the same individual VAT identification number with which it is identified for its domestic VAT returns.

For the non-Union scheme, the taxable person (who has neither a business establishment, nor a fixed establishment in the EU[1]) can choose any Member State to be the Member State of identification. That Member State will allocate an individual VAT identification number to the taxable person (using the format EUxxxyyyyyz).

In both cases (Union and non-Union schemes), the taxable person can only have one Member State of Identification, and all supplies of telecommunications, broadcasting and electronically supplied services to non-taxable persons in a Member State in which it is not established must be declared via the mini One Stop Shop if the taxable person opts to use the mini One Stop Shop.

 


[1]   It should be noted – when distinguishing between the Union and non-Union schemes - that there are certain territories of EU Member States to which the VAT Directive 2006/112/EC does not apply which are listed in Article 6 of that Directive.