Two posts relating to MOSS – this is getting tedious, but I feel that I must share this one.
I mentioned in the last post that many multi-nationals would have registered for VAT in the likes of Madeira or Luxembourg. Well, that advantage was removed from 1 January 2015, as the VAT revenue it was enjoying would now accrue to the other Member States where a significant number of customers were. The obvious effect is that the revenue streams that Luxembourg enjoyed have been somewhat diminished. Poor Luxembourg, I hear you say. But please don’t waste any sympathy on them as they allegedly threatened to block the 1 January 2015 changes, unless the EU collectively agreed to make up the loss in revenue – to the tune of €1.1 billion over four years! I had expected that Luxembourg was voluntarily paying some of their earlier windfalls to the EU when all the US multi-nationals moved in, but oddly enough I’ve been unable to find anything of that nature. On a brighter note, though, the UK stands to benefit to the tune of about €360m per annum as a result of sales to the UK.