The special VAT regime (taxation of the margin) that applies to travel agents and to tour operators (incl. of on-line travel agencies) – the TOMS – has just recently been commented on in detail in eight judgments handed down by the Court of Justice of the European Union. The eight decisions all relate to the issue of whether the special VAT regime must only apply in a transaction between a travel agent and a “traveler” or whether the regime must apply to any transaction falling within the scope of that scheme between a travel agent and any client. One of the decisions involving Spain also dealt with a few separate issues – mostly specific to Spain – apart from the calculation of the margin itself.
The Implementing Regulation on the B2C 2015 place of supply changes, which was adopted last June, has now been published on the Council’s website. It amends/complements VAT Implementing Regulation 282/2011 on the place of supply of services. The regulated provisions concerning the B2C 2015 VAT changes have effect as from 1 January 2015.
For more information, we refer to our previous post here.
Do you sell services to consumers? Are they electronically supplied? Are your customers in the EU? Are you ready for the B2C 2015 VAT changes?
There are significant changes on the horizon for the VAT paid on electronically supplied services. Any business headquartered in any country selling broadcasting, telecommunications and electronically supplied services to EU retail customers will be affected by these changes. This includes businesses in the US, China and Australia.
The new legislation is effective from 1 January 2015. It will have the effect of changing the place of supply, and the country of taxation, of business to consumer (B2C) telecoms, broadcasting and ‘electronically supplied services’ from the country in which the supplier is established to the country in which the consumer is resident. One effect of this is that, rather than applying a single VAT rate in its country of establishment, affected businesses may be required to apply the local VAT rate in 27 different member states.
Date: Thursday, 5 September 2013
Timing: 9.30 – 16.30 CET
Location: Brussels (address)
With the 2015 VAT Implementing Regulation now being adopted, which rounded the EU legislative framework, businesses that will be affected by the changes in legislation should now have a clearer picture of their 2015 footprint and the critical issues they need to address in the run-up to 2015.
As an update to our previous webcasts on the 2015 EU VAT changes to electronically supplied services, we are pleased to inform you that we organize a follow-up webcast on August 22, 2013 at 12:00PM (EDT) to address the agreement reached by the EU Ecofin Council on June 21, 2013.
The council agreed upon the VAT Implementing Regulation addressing the new treatment for sales of electronically supplied services (e-services) by EU established sellers to EU private individuals effective January 1, 2015. The new rules will require an EU established seller to account for VAT for such sales at the rates where the EU private individuals are located rather than the EU established seller’s location as, historically, it has been done. The list of services considered e-services is broad and includes mobile applications, downloadable or cloud accessible games and music, and online subscription services.
We are pleased to present our new 2015 module on GlobalVATOnline (GVO), which has been launched ahead of the EU VAT change on 1 January 2015 when B2C supplies of telecommunications, broadcasting and electronic services made by EU based companies will change from being taxed where the supplier belongs to being taxed according to the VAT rates applicable where the customer is located or is normally resident.
As reported in our previous blog posts, the Italian government considered to increase the standard VAT rate from 21% to 22% with effect from 1 July 2013.
However, the Italian government decided to postpone the planned VAT rate increase from 1 July 2013 to 1 October 2013. You can access PwC’s GlobalVATOnline notification here.
We are happy to announce that the EU Ecofin Council reached political agreement on the proposal for VAT implementing Regulation on B2C 2015 place of supply issues, in a meeting in Luxembourg last Friday 21 June.
It will apply as from 1 January 2015. It will be officially released in the next weeks after clean up and translation to the EU official languages.
Important to note is that this Implementing Regulation has direct effect and does not need to be implemented/transposed by the EU Member States in their national VAT legislation (primary, secondary or administrative guidance).