VAT telecommunications and electronic services

Since 1 January 2015, all telecommunications, radio, television and electronic broadcasting services (“TRE”) provided by a business or professional to private end consumers established or resident in a European Union State other than the provider of that service, are taxed in the State of establishment or residence of said end consumer.

That means that the operators that provide this type of service will have to pay tax for VAT in each of the States where their end consumer customers are established or live.

This optional regime aims to reduce the “indirect tax burdens” that the localization rules that came into force in 2015 could entail for operators. To this end, the regime allows entrepreneurs or professionals not to have to identify themselves and register in each State of consumption, but rather they will be able to submit their VAT returns from a single point on the Web Portal of their State of Identification. In order to do so, they should expressly register themselves in this scheme.

No. The Mini One-Stop Shop can only be used by those entrepreneurs or professionals who provide telecommunications, radio, television and electronic broadcasting services and whose recipient is an individual established or domiciled or resident in a Member State other than that of the provider's headquarters.

In the case of providing services to businesses or professionals and to individuals, taxpayers will be able to use the Mini One-Stop Shop for the services to individuals. 

In the case of providing services exclusively to businesses or professionals, the Mini One-Stop Shop is not applicable.

The Mini One-Stop Shop cannot be applied when the recipients of the services are individuals established in the same Member State where the business or professional who provides them is established.

You can access the “Localization Rules” section for a complete description of these services.