Tag Archives: 2015

EU: How to define the location of an ebiz customer?

In today’s article we will take a look at information the EU Commission suggests that should be collected and used to determine the location of the customer – buyer of eservices. We will also analyze the practicability of the various proposed location evidences and think about how easy they are obtained in practice.

As you are probably aware, at least as of 2015 every business supplying eservices to non-VAT registered customers in the EU will have to charge VAT in the country where its customer is located. In a number of cases this rule already applies (e.g. if the eservices are supplied by non-EU companies to EU customers or if they are supplied to Swiss, Norwegian, etc… customers).

Find out more

Featured: EU 2015 B2C VAT changes – it’s sooner than you think!

On 1 January 2015 the final phase of the so-called VAT package will come into force and will involve important changes in the VAT treatment of intra-EU business-to-consumer (‘B2C’) supplies in relation to telecommunications, broadcasting and electronic services.

From that moment on, all telecommunications, broadcasting and electronic services provided to non-taxable persons will be taxable at the place where the customer is established, has his permanent address or usually resides. Affected businesses will therefore be required to charge, report and pay local VAT in every Member State in which they have customers, which may result in multiple VAT-registrations throughout the EU.

Find out more

EU: 2015 VAT changes to eservices – the “keep it simple” edition

First and the most important fact: These rules are mandatory for any kind of ebusiness, no matter where it is established or has a nexus: in EU, US, China, India, Australia, Switzerland. As soon as a company provides eservices to a non VAT registered EU customer (regardless whether the customer is a legal or a natural person) it is bound by these rules, regardless whether it has a “physical” presence, server or agent in the EU. The customer’s location is the only thing that matters.

We have already presented some of the upcoming VAT changes to eservices (and also telecom and broadcasting services) previously. Find out more

EU: New VAT B2C rules for telecom, broadcasting and eservices might become effective much earlier than 2015 (and other proposed VAT changes)

As reported end of last year, EU Commission has on 18 December 2012 published a new proposal for amending the VAT Implementing Directive 282/2011, which provides additional rules and clarifications regarding the place of supply rules – i.e. defines in which country VAT should be levied.

For the purposes of this post I will limit myself only to those relevant for us telecom, broadcasting and e-services, even though the proposal deals also with some other issues (e.g. work on immovable property).

Find out more

Live webcast: 2015 EU VAT changes to electronically supplied services, telecom and broadcasting: What does it mean for you?

Live webcast: 11:00 (GMT / UK time) Monday, 28 January 2013

Do you sell services to consumers? Are they electronically supplied, telecom or broadcasting services? Are your customers in the EU? Are you investing into the ebusiness, telecom or broadcasting sectors? Are you ready for the B2C EU VAT changes?

In 2015 the EU VAT place of supply rules are changing. B2C telecoms, broadcasting and electronically supplied services will be taxed where your customer is located or belongs. As a result, different VAT rates may apply compared to your current situation impacting your pricing or profit margin.

Find out more

EU: B2C 2015 VAT changes – New proposal for an Implementing Regulation

On 18 December 2012, the Commission adopted the proposal for a Council Regulation amending the VAT Implementing Regulation (EU) No 282/2011 as regards the place of supply of services. It is the final proposal in a package of measures in view of the implementation of the new VAT taxation rules for B2C telecommunications, broadcasting and electronic services that will become effective as of 1st January 2015.

The proposed implementing measures relate to the identification and evidence of customer location and are needed to ensure a uniform application within the EU. It also includes a proposed deemed provision in case of intermediated delivery of electronic services.

Find out more

EU: Proposal of the new Voucher Directive

As reported some time ago the EU Commission is working on the proposal of a Voucher Directive, which will amend the VAT Directive with rules on vouchers.

Please find the current draft of the proposal here.

This is another topic that will be discussed during our meeting of the B2C 2015 Working Group on 24 October 2012 in Brussels. If you are not already member of this group, contact Sophie Claessens directly.

EU: Mini one stop shop (MOSS) regulation for ebusinesses adopted

The Council Regulation (EU) No 967/2012 laying down rules on the application of the provisions of the VAT Directive concerning special schemes for taxable persons supplying telecommunications services, broadcasting services or electronic services to non-taxable persons (i.e. B2C) has been published.

The Regulation amends Council Implementing Regulation (EU) No 282/2011 and introduces new measures covering both “mini one stop shop” special schemes for EU and non-EU ebusinesses to be applied as from 1 January 2015.

For additional information you can access the Minutes of the Council (page 13) and text of the proposal.

Find out more

Who are B2C clients for VAT purposes?

This article is again about one of the most frequently asked questions we are facing in our discussions with ebusinesses: What are “B2B” and what “B2C” clients?

The logical and expected explanation would be: B2B are all legal persons and B2C all natural persons / private individuals.

Unfortunately VAT follows its own logic – which is in most cases illogical when considered in everyday content. The above explanation therefore cannot be applied for VAT purposes.

Find out more

EU: VAT reporting rules for telecommunications, broadcasting and eservices mini one stop shop scheme

The Implementing Regulation No 815/2012 defining the VAT reporting rules for the mini one stop shop scheme (“MOSS”) for B2C telecommunication, broadcasting and eservices in the EU has been made officially available.
Find out more