CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. EC Confirms VAT Overhaul For Electronic Services

EC Confirms VAT Overhaul For Electronic Services

by Ulrika Lomas, Tax-News.com, Brussels

21 December 2012


A package of reforms adopted by the European Commission will result in the taxation of telecommunications, broadcasting and electronic services at the location of the customer.

Under the final proposal adopted by the Commission on December 18, as intended under a 2010 Directive, from January 2015 taxation will take place where the customer is established or resides. For the customer, the value-added tax (VAT) rate will be the same regardless of where the supplier is established.

The aim is to better ensure taxation at the place of consumption and to take into account the development of e-commerce. The Commission argues that once the new rules are in place, "there will be a level playing field for all businesses in the sectors concerned, regardless of their size or corporate structure."

The Commission hopes that the reforms will contribute to the development of e-commerce in the single market and says it is now up to European Union (EU) member states to adopt its regulations. Member states will need to set up the systems that will allow taxpayers supplying telecommunications, broadcasting or electronic services across the EU to comply with the new rules.

The suppliers themselves will be able to submit a single VAT return in the member state in which they are registered.

TAGS: tax | business | European Commission | value added tax (VAT) | commerce | law | tax reform | European Union (EU) | services | Europe

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »