From January 1, 2015 providers of telecommunication, broadcasting and electronic services must pay VAT in the EU country of establishment of their B2C customers. This change has an impact on customers of Dutch billing expert FIQAS Software B.V. The latest version of Abillity®, FIQAS’ advanced billing system, already supports the new VAT rules making them fully prepared to meet this challenge.
Currently, companies located in one of the European Union countries (EU) providing telecommunication, broadcasting or electronic services to private customers (B2C) in one of the EU countries must pay VAT in the EU country of establishment of their company. E.g. Companies located in the Netherlands pay 21% Dutch VAT.
From 2015 onwards a company must pay VAT in the EU country of establishment of its customers, regardless of where it is located. Within the EU, providers must register for VAT, file VAT returns and comply with VAT rates in 28 different countries. The EU service provider may apply for the so-called Mini One Stop Shop (MOSS) scheme, which somewhat reduces the administrative burden.
The new VAT legislation presents considerable compliance challenges for businesses particularly related to billing. Companies making use of the FIQAS Managed Billing Services or running Abillity® themselves however are fully prepared to comply with the new VAT rules, thanks to FIQAS’ continuous and autonomous product development.
Abillity®’s flexible account/customer structure offers adequate options for the required additional registration on account level. The system also supports the registration of various VAT-rates per country-product combination, as well as high and low VAT rates for identical product types per country. The combination of Abillity®’s smart product structure and the configurable, flexible billing process ensures all services are invoiced for every account according to the correct VAT regime. Of course Abillity® also takes the changed VAT regulations into account when exporting to any financial system.
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