Tag Archives: EU

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.
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EU: What are eservices?

One of the relatively common questions we receive from our ebiz clients these days is very logical: What are eservices? Let’s start with the terminology and follow it up with examples.

There are many different expressions for this kind of services: electronic services, electronically supplied services, digital services, digital products… We will call them eservices – if the European Commission can live with this, so can we. And it is such a nice, short, effective word. Find out more

EU: E-book rates – Commission strikes back

As reported previously here, here, and here, France and Luxembourg have unilaterally decided to tax e-books at a (super)reduced VAT rate. They decided to tax them as “normal” books instead as e-services as they should be treated by the letter of the EU VAT Directive. This gave e-book traders established in France and Luxembourg a considerable advantage when selling e-books to their EU customers compared to e-book traders in other EU countries as it made the e-books in France and Luxembourg approx. 12% cheaper than before (reduction to a 3% super-reduced VAT rate instead of the standard rate of 15% in Luxembourg and to 7% instead of 19.6% in France).

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EU vouchers developments – Lebara, UK SPV legislation and Voucher Directive proposal

May seems to be a very busy month for everyone dealing with vouchers.

First the ECJ’s judgement in the case C-520/10 Lebera has been published on 3 May 2012, which was shortly followed by the text of the proposal for the new Voucher Directive changes to the UK voucher rules, effective as of 10 May 2012. Quite a busy week for a subject discussed for years without any major breakthrough.

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EU: What is the correct VAT rate for e-books?

The Luxembourg VAT Authorities have issued a Circular stating that no distinction should be made between books on physical and electronic means, meaning that the super-reduced 3% rate already applicable to books should also apply to e-books. The Circular is effective as of 1.1.2012 (read more). It seems to us that Luxembourg has adopted this position as a response to France’s recent decision to adopt the reduced rate of 7% for e-books published by companies based in France (read more), even though Luxembourg officials claim that it is based on the content of the “Green paper” on future of the EU VAT system, which is actually aiming to plot the  future of the EU VAT system (and not current VAT legislation).
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EU: Advocate General supportive of taxpayer in the Lebara ECJ case

The Advocate General has given his opinion in the UK case of Lebara Ltd (C-520/10) at European Court of Justice (ECJ) concerning the supply of phone cards to distributors in other EU-States, which end users belonging in that same EU-State can redeem in return for receiving telecoms services (previously reported here). In summary, the Advocate General has suggested that the distributor, and not the card issuer (in this case Lebara) should be liable for the VAT due on the supply of telecoms services to end users. The reasons for this are that the distributor is either acting as an undisclosed agent of the card issuer or, in the alternative, because the card issuer makes a single supply of telecoms services to the distributor and the distributor in turn makes a supply to the end user.
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EU: Internet sellers are jointly liable for import duties

The European Court of Justice (ECJ) has recently passed a decision in a Case C‑454/10 Oliver Jestel regarding the question of who is liable for the payment of customs duties when goods are imported into the EU. The case involved an Online shop within the EU, where the shop owner was acting as an intermediary between the fraudulent seller and the customers. ECJ has essentially deemed that the shop owner is co-liable for the payment of the costumes duties and import VAT, which should have been paid (but were not) be the foreign seller, as the shop owner should have been aware that the seller is selling goods illegally imported into the EU.
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