Value added tax on To simplify compliance with these in-game purchases rules, the EU has introduced the ‘mini one-stop shop’ (MOSS) where Game businesses offering the option affected businesses can register for to make in-game purchases to users and remit VAT in a single jurisdiction. in EU jurisdictions need to consider In order to benefit from the MOSS whether they should charge their simplification system, businesses users value added tax (VAT) on need to register for VAT MOSS in these supplies. Indeed, businesses an EU Member State. supplying ‘digital services’ such as digital downloads of games and Businesses wishing to offer in-app add-ons to EU consumers may be purchases to EU-based users should required to register for, charge and seek specialist VAT advice if they pay VAT to tax authorities in the have any concerns that they may consumer’s home jurisdiction. be required to charge VAT. As such, game developers and Companies with employees who publishers may be required to: work for a prolonged period in another jurisdiction from the determine the location of their jurisdiction of the company (for users who make in-app purchases example, from their home territory) and collect supporting evidence need to consider whether such (eg credit card numbers and IP work patterns could give rise to a addresses) taxable presence (a ‘permanent register for VAT in the EU establishment’) from a local tax jurisdictions where their users perspective. Payroll and social are located security obligations also potentially charge VAT on in-app purchases need to be considered. and pay that VAT to the relevant tax authority. 34