EU VAT update

As of 1 January 2015, telecommunications, broadcasting and electronic services which are supplied to customers within the EU will be taxed in the country where the customers belong, independent of whether the customer is a taxable person or a consumer and independent of whether the vendor is established in EU or not.

If the services as described are supplied to taxable persons in the EU, the VAT due is to be accounted for by the buyer using the reverse charge mechanism.

If on the other hand the services are supplied to consumers in the EU, the vendor must charge VAT in the country where the customer belongs. In order to avoid that vendors will have to VAT register inn all of the EU-countries in which his customers live, a simplified procedure is implemented – a Mini One Stop Shop.

Are you prepared?

We would be happy to assist if required.

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