Rules applicable until the end of 2014
Preparing for the change
Report on feasibility of new rules 2015
Events related to the new rules
Rules applicable until the end of 2014
Supplies into or from the EU
| Type of service transaction |
VAT payable in ("place of supply") |
|
Telecoms/broadcast/electronic services from:
|
Country where customer belongs (has their main business or fixed premises, their permanent address or usually lives). In some cases, subject to a 'use and enjoyment' override |
The effects of this are as follows:
EU BUSINESSES supplying to:
| Business or consumer outside the EU |
Usually no EU VAT charged. But if the service is effectively used & enjoyed in an EU country, that country can decide to levy VAT. |
NON-EU BUSINESSES supplying to:
| Business in the EU |
No VAT charged. Customer must account for the tax (reverse-charge mechanism). |
|
Consumer in the EU - telecoms or broadcasting services |
Must charge VAT in the EU country where the service is effectively used and enjoyed. |
|
Consumer in the EU - electronic services |
Must charge VAT in the EU country where that consumer belongs (is registered, has their permanent address or usually lives) |
Supplies between EU countries
| Type of service transaction |
VAT payable in ("place of supply") |
|
Telecoms/broadcast/electronic services supplied within the EU |
B2B – EU country where the customer belongs B2C – EU country where the supplier belongs |
Sales to final consumers – overview
| RULES until 31/12/2014 Telecommunications, broadcasting & electronic services (1) | |||
|
Services supplied by/to |
EU consumer in EU country 1 |
EU consumer in EU country 2 |
Non-EU consumer(3) |
|
EU supplier (EU country 1) |
Taxable in EU country 1 |
Taxable in EU country 1 |
No EU VAT |
|
EU supplier (EU country 2) |
Taxable in EU country 2 |
Taxable in EU country 2 |
No EU VAT |
|
Non-EU supplier |
Taxable in EU country 1(2) |
Taxable in EU country 2(2) |
No EU VAT |
(1) One-time registration (MOSS) available for electronic services.
(2) Taxable in country of effective use & enjoyment, if this is not the country where the customer belongs.
(3) Unless used in a country that applies the effective use & enjoyment rules.
Preparing for the change
Report on feasibility of new rules 2015
The European Commission published a report to the Council on the feasibility of applying the new VAT rules for telecom, broadcasting and electronic services as of January 2015. The report describes the action taken in the last six years to prepare the implementation of the new rules, ensure legal certainty and facilitate business compliance.
Events related to the new rules
- Event in Herent (Belgium), 20 November 2014, BeCommerce Cross-Border Summit.
- Event in Paris, 3 November 2014, organised by the French tax authorities, Enterprise Europe Network Paris Ile-de-France Centre and the European Commission.
- Event in Berlin, 22 October 2014, organised by KMLZ, DStV, DIHK and the European Commission.
- Event in Brussels, 23-24 October 2014 organised by the International VAT Association (IVA).
- Event in Paris, 23 September 2014, organised by CMS Bureau Francis Lefebvre
- Event in Santa Clara, California, USA 18 September 2014 organised by Tax Executives Institute.
- Event in Santa Monica, California, USA, 16 September 2014 organised by BayPay. See the presentations.
- Event in Warsaw, 9 September 2014. Information is available.
- Event in Luxembourg, 18 June 2014. See www.gr-businessdays.com for further information. Watch a video of the event.
- Event in London, 2 June 2014. See presentations and video of the event.
- Event in Luxembourg, 15 May 2014. Organised by Luxembourg's Chamber of Commerce and the European Commission's Representation in Luxembourg.
- Event in Tokyo, 17-18 April 2014. Global VAT Forum organised by the OECD. See dedicated page.
- Event in Brussels, 13 March 2014. Organised by Brussels Enterprises Commerce and Industry (BECI)
Other information
Communication activities of Member States on 2015 VAT changes