The provisions of art. 1524 of the Fiscal Code regarding the rules governing

the scheme for electronic services, telecommunications, broadcasting provided by taxable persons not established in the European Union (non-EU regime) and art. 1525 of the Fiscal Code establishes rules on special arrangements for electronic services, telecommunications, broadcasting provided by taxable persons established in the European Union, but in a Member State other than the Member State of consumption (EU rules).

These legal provisions are also known as the system Mini One Stop Shop, but it is necessary to elaborate a procedure for registration of taxpayers in order to apply the special schemes for electronic services, telecommunications, broadcasting, and to declare VAT, according to the provisions of art.1524 and art.1525 of the Fiscal Code, in the event that Romania is a Member State of registration.

M1SS will allow companies to register, submit statements and pay VAT due to Member State of Consumption via the web portal provided by the Member State of identification (usually the Member State in which the company has established the economic activity).

The simplification consists in the opportunity that these companies will not register in each of the countries where the VAT is due, but to benefit from electronic services through the Member State of identification. Also, the companies will be charged for VAT at the rate applicable in the Member State of consumption.

M1SS use will be optional and will address both business companies based in the EU (EU scheme) and those established outside the EU (non-EU scheme). The VOES Scheme (VAT on E-services) already operational and made available to providers of electronic services outside the EU will be replaced with M1SS.