E-Commerce Tax Rules from 1st January 2015
An essential component of E-Commerce Tax and VAT when setting up an online business in Malta is that the change of VAT rules since the 1st January 2015. Certainly, this change has resulted in a more challenging administrative environment.
EU businesses supplying e-services to consumers within another EU country are required to charge VAT dependent on the state to where the customer belongs. For example, if a French individual downloads an app on their phone from a Maltese E-Commerce company, then French VAT should be charged. Companies report this through the Mini One Stop Shop (MOSS).
However, since 1st January 2015, it has also been required for Non-EU businesses providing e-services to consumers to charge VAT according to the country the customer resides. The Non-EU company also has to register in an EU Member state to get a VAT ID number.
A Non-EU business providing e-services to an EU business does not have a requirement to charge VAT but must account for the E-Commerce tax using the reverse charge mechanism.
If your business needs help navigating the complex VAT and Tax laws, contact our specialist team for a consultation.
E-Commerce Business Administration
There is no doubt that the change in laws has increased the business administration to remain compliant. We continually help our clients from differing E-Commerce backgrounds with many tax issues, and we ensure they stay fully compliant in this often over-complicated area.
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