MOSS records and audits

How are MOSS audits dealt with?

The audit will be conducted by Revenue staff, although officials of other Member States’ tax administrations may be present as observers.

The tax administration of the Member State of consumption will outline to Revenue the basis of their request for an audit.

Revenue is required to notify the other Member States whether or not an audit will be carried out.

Each of these Member States will have an opportunity to ask for records relating to supplies in its jurisdiction to be examined during the course of the audit.

What issues may be examined during an audit?

The main issues that may be examined are:

• the nature of the supplies
• the correct application of tax rates
• whether you make the final supply to the customer
• the taxable status of the customer
• how the location of the customer is determined — in particular, are either your business or IT processes, or both, accurately applying the relevant presumptions or the appropriate evidence to determine the customer’s location?

This list is not exhaustive and the issues examined will depend on the facts surrounding the audit.