As indicated at our recent B2C 2015 work group event in Brussels PwC recently conducted a “2015 Impact and Readiness Survey” for which we invited businesses from across all sectors (telecom, broadcasting and eservice providers) and all geographical regions.We launched this survey with the aim of gathering data on the impact of the EU 2015 VAT changes on affected businesses. The survey also testes how ready businesses feel to be able to deal with the imminent changes.
On 4 April, the European Commission has published Explanatory Notes to prepare businesses for the new VAT rules for telecom, broadcasting and electronic services, which will enter into force on 1 January 2015.
The aim is to help businesses to be fully prepared on time for the change-over, whereby VAT on telecom, broadcasting and electronic services will be charged where the customer is based, rather than where the seller is.
The Explanatory Notes are available on the EU Commission’s website in English (click link). (It will later be translated in all EU languages, as well as in Chinese and Japanese.)
We will discuss the key provisions and critical issues of the EU Commission’s Explanatory Notes with businesses, delegates of the Member States and the Commission during our next B2C 2015 Working Group meeting in Brussels, on 23 April 2014.
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.
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 those suppliers. The changes will also affect non-EU suppliers. The legislation is expected to have a profound impact on eservices providers, particularly on their pricing and commercial strategy
Stephen Dale, Martin Blanche and Johnathan Davies provide an overview on the changes the new EU VAT rules will bring to telecom operators, broadcasters and other providers of eservices from 1 January 2015. Their article “EU: small change, big impact” (originally published in Tax planning international – Indirect taxes: Volume 11, Number 10, October 2013) focuses on possible outcomes for eservice providers.
The EU Commission has published practical guidelines on the mini-one-stop-shop to prepare businesses for the new B2C VAT rules for telecoms, broadcasting and eservices, which will enter into force with 1 January 2015.
The aim is to help businesses to be fully prepared on time for the change-over, whereby VAT will be charged in the country where the customer is based.VAT will have to be collected by all providers of telecom, broadcasting and eservices, regardless whether they are established inside or outside of the EU. Find out more
Today we will take a look at the basics of the new Mini One Stop Shop (“MOSS”) VAT registration scheme and compare the EU and non-EU MOSS schemes with their alternative – the “standard” local VAT registration in up to 28 EU countries.
As you are most probably aware companies selling telecom, broadcasting and eservices to B2C customers in the EU will have to charge VAT in the country of the customer and at that country’s VAT rate. This will mean 28 countries and 28 VAT rates (or 56 rates if ebooks and similar eservices will potentially become taxable at reduced VAT rate).
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).
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.
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.
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.