Tag Archives: VAT

Netherlands: New Decree on the VAT treatment of phone cards and mobile phone contracts

On 6 February 2013, the Dutch State Secretary of Finance published a new Decree regarding the VAT treatment of the sale, distribution and use of phone cards and mobile phone contracts. The Decree entered into force on 7 February 2013, although businesses have until 1 July 2013 to adapt to some of the new rules. The Decree includes a number of substantive changes. Additionally, the Secretary of State provides a number of definitions.

The impact of the Decree is not limited to telecommunications businesses, but also affects agents / distributors and content providers. All these parties may have to change parts of their processes and systems. Find out more

Our ebiz Due Diligence experience: When VAT becomes a material issue

In this article we attempt to explain in a simplified way the impact VAT can have on determining the purchase price of an ebusiness company during a due diligence process. This should be of special interest for investors investing in ebusinesses and also for owners of a start-up when planning to gain additional capital or when playing with the idea of selling their companies some time in the future.

We have explained in previous posts that as of 1.1.2015 all ebusinesses providing eservices to non-VAT registered customers in the EU will have to charge VAT at the rate applicable in the EU country the customer resides in. 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).

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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.

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Czech Republic and Finland: VAT rates increasses now official

Some time ago, we have announced that Finland and Czech Republic are planning to increase their VAT rates on 1 January 2013. This has indeed come to fruition as reported; both countries have increased all their VAT rates by 1% as of today morning.

Some more info can be found here and here. Please remember, Cyprus also plans to increase its VAT rates soon.

P.S. and without being cynical in any way: We wish you all a happy and most successful 2013!

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.

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Cyprus: VAT rate increase on 14 January 2013

Cyprus is again increasing its VAT rates.

The standard VAT rate will increase from 17% to 18% for the period 14 January 2013 to 12 January 2014. From 13 January 2014 the standard VAT rate will increase again to 19%, at which point the 8% reduced rate also rises to 9%. The current reduced rates of 5% and 0% remain unchanged.

Original news can be found here.

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