On 21 June 2013, the European Council reached political agreement on implementing rules for taxing B2C telecommunications, broadcasting and electronically supplied services from 1 January 2015.
In this article, Sophie Claessens and Ine Lejeune give an overview of the new implementing provisions and what additional guidance can be expected from the Explanatory Notes that are currently being drafted by the European Commission.
Publisher/Publication: IBFD, International VAT Monitor, 2014 (Volume 25), No. 1; first published online on 16 January 2014.
We are pleased to update you on some recent EU VAT developments that we believe are very relevant for all e-commerce and digital businesses in the context of the B2C 2015 VAT changes and their implementation projects.
Next meeting of the B2C 2015 Working Group
Our next meeting of the B2C 2015 Working Group is planned to take place on Wednesday 23 April 2014, all day, in PwC Brussels’ offices. More information on the agenda will follow in due course. Please contact me if you have not received our invitation and would like to join us.
EU Commission and the Explanatory Notes on B2C 2015 VAT changes
As a follow up to the Fiscalis Workshop in ...Find out more →
In line with the new VAT legislation, set to take effect on 1 April 2014, electronic/digital services (“eservices”) supplied by a business outside South Africa to a recipient in South Africa will require the supplier to register for Value-Added Tax in South Africa.
The recipient is deemed to be located in South Africa if:
- that recipient is a resident of South Africa or
- where payment originates from a bank registered or authorized in terms of South African law.
It is important to realize that this definition applies supplies made both to B2B (Business – to – Business) and B2C (Business – to – Consumer).
The introduction of VAT taxation of eservices provided by non-resident providers to residents of South Africa (both B2B and B2C) or paid for from a South Africa’s bank account has been postponed from the originally planned 1 January to 1 April 2014.
For more information refer to GVO.
Not long ago we have updated you about the EU Commission’s infringement procedure against France related to their application of the super reduced VAT rates for ebooks. France and Luxembourg share the opinion that ebooks should be taxed as their physical contra-parts (as books), whereas the EU Commission has the opinion that under the current VAT Directive rules ebooks should be regarded as all other eservices and therefore taxed with the standard VAT rate.
Following the published case against France two weeks ago, the Court of Justice of the European Union (“ECJ”) has also published the EU Commission’s infringement procedure against ...Find out more →
Date: Wednesday, 11 December 2013 Timing: 9.30 – 16.30 CET Location: PwC Brussels office (address) Participation to the meeting is by invitation only. The meeting will be held in English and is free of charge. You will have seen that the 2015 Implementing Regulation has now been published in the Official Journal of the European Union after legal clean-up and translation. You can access it via this link.
To ensure the uniform application of this Implementing Regulation and building on the contributions received from different stakeholders (including PwC), the Commission services have started with the preparation of VAT Explanatory ...Find out more →
Two months have passed since our last VIES report two months; its time to take a look at how this very important site hosted by the European Commission has behaved in September and October 2013. The reasons why the VIES application is so important for ecommerce businesses are explained here.
September was an incredible month for the VIES site – it was the first month ever (at least since we are monitoring the site) with a 100% up-time. It seemed that the IT team working for the European Commission has finally managed to keep everything in a perfect working order.
A reasonable response time of below 1 second was ...Find out more →
We have been discussing the developments about the EU Commission’s infringement procedure against Luxemburg and France related to their application of the super reduced VAT rates for ebooks several times in the past (last time here). The EU Commission is of the view that under the current VAT Directive rules ebooks should be regarded as all other eservices and taxed with the standard VAT rate. Luxemburg and France are of the opinion that ebooks should be taxed as their physical contra-parts – i.e. as books.
As reported on PwC’s GlobalVATonline, the Court of Justice of the European Union (“ECJ”) has recently published the EU Commission’s ...Find out more →
The start of 2015 will bring the biggest single change to the EU VAT regime that telecom operators, broadcasters and others that provide eservices have seen in decades.
The legislation is expected to have a profound impact on e-services providers, particularly on their pricing and commercial strategy. As providers of these services take steps to adapt to the new legislation, the result will be either a sharp increase in the prices charged to many consumers or a cut in suppliers’ profit margins – neither of which is a desirable outcome.
In practice, companies based in the EU will be affected the most, as the rules change mostly for ...Find out more →
With the availability of high speed Internet access, smart phones, and tablets, it is not surprising that the global retail industry is experiencing a fundamental shift in how individual consumers research, select, and eventually purchase products. Individuals are shopping through a variety of different channels, some physical, some virtual, making for an easier and more streamlined shopping experience. E-commerce has quickly become a key channel for retailers to reach their customers. This embrace of digital technology and social media is creating a new landscape for retailers as they ensure that their policies and practices support ...Find out more →