As from 1st January 2015, the changes to the value-added tax (VAT) place of supply rules for businesses selling broadcasting, telecommunications and electronic services to end customers will enter into force in the EU. VAT in respect of these services will be charged at the place where the customer is based, instead of the place where the supplier is located.
On Monday 13th October the European Commission launched a new web portal which seeks to facilitate the understanding of the different VAT rules which apply throughout the EU. The web portal has been identified by the European Commission as a crucial tool to ensure that the new VAT rules are implemented without any major disruptions, especially in the light of the different standard VAT rates, reduced rates and exemptions which vary from one member state to another.
Moreover, a ‘Mini One Stop Shop’ (MOSS) will be launched as from 1st January 2015 to enable companies supplying the above services to submit a single VAT declaration and payment in their member state of identification in respect of all their intra-EU transactions.
The new VAT rules applicable to broadcasting, telecommunications and electronic services seek to create a more level playing field for businesses engaged in the provision of these services as well as ensure a fair distribution of taxation rights amongst member states.
