VAT Changes in 2015

The new EU VAT rules on the supply of digital services affect all companies (EU and non-EU) that sell to consumers inside the EU.

The Details of the Change

On the 1st of January 2015, the VAT ‘place of supply’ rules changed. From now on telecommunications, broadcasting and electronic services will always be taxed in the country where the customer belongs (goods and non-digital services sold over the Internet are not within scope).

For business customers VAT is calculated based on the country where the business is registered or the country where it has fixed premises receiving the service.

For private customers VAT is calculated based on the country where they are registered, have their permanent address or usually live.

Who’s responsible for accounting for VAT?

Where digital services are supplied on a business to consumer basis, the supplier is responsible for accounting for VAT on the supply to the tax authority, at the VAT rate applicable in the consumer’s EU member state.

A Few Useful Links

Click Here to visit Gov.uk official publication on the recent changes

Because of the size of the changes and the need to keep this information up to date this GitHub page was created to collect as much information about this subject as possible: http://rachelandrew.github.io/eu-vat/