European Union: Important VAT changes related to MOSS regime

The VAT Mini One Stop Shop (MOSS) regime is an optional scheme that allows businesses and professionals to account for VAT on supplies of certain digital services that would normally be due in multiple EU countries in just one single EU country. Below is an overview of the final VAT changes to supplies that are subject to the MOSS regime:

Bulgaria:

From 1 July 2020, a reduced VAT rate of 9 percent applies to the following: textbooks, educational books, teaching kits, children’s illustrations, drawing or colouring books, printed or handwritten music scores. The new rate does not apply to publications intended for advertising or consisting of video or audio-music content.

Czech Republic:

From 1 May 2020 a new reduced VAT rate of 10 percent was applied to e-books.

Germany:

From 1 July 2020 until 31 December 2020 the Germany tax authority has reduced their VAT rates as follows: standard rate reduced from 19 to 16 percent, reduced rate is reduced from 7 to 5 percent.

Ireland: 

A reduced VAT rate of 21 percent will take effect form 1 September 2020 until 28 February 2021.

Netherlands:

From 1 January 2020, a new reduced VAT rate of 9 percent was introduced on the supply of electronic publications of books, newspapers, magazines, paid access to websites of newspapers and magazines, downloadable audio books, sheet music and educational resources.

Slovenia:

From 1 January 2020, a new reduced VAT rate of 5 percent was introduced on the supply of books, newspapers, periodicals, brochures, leaflets, children’s books, printed music and maps. The new rate applies to both physical and electronic publications, but does not include those that are mainly used for advertising or contain primarily video or audio content.

Spain:

From 23 April 2020, a new VAT rate of 4 percent will be applied for books, newspapers and magazines. The new rate will apply even when these items are considered as electronically supplied services, which eliminates the difference in VAT tax rates between physical and electronic books.

United Kingdom:

From 1 May 2020, electronic supplies of the following products are zero-rated, unless they’re primarily used for advertising, audio or video content: books, booklets, brochures, pamphlets, leaflets, newspapers, journals and periodicals, children’s picture and painting books.