Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/18/2012

EU - VAT on telecommunications, broadcasting, electronic services 

December 18:   The European Commission (EC) today adopted a final proposal in a package of measures that is intended to standardize the value added tax (VAT) treatment of telecommunications, broadcasting and electronic services.

VAT on telecommunications, broadcasting and electronic services would be imposed at the place of the customer (i.e., where the customer is established or resides).


The measures are intended to be effective beginning in 2015.


Today's adoption of the proposed measures by the EC is the last in a series of initiatives. It is now up to EU Member States to adopt these provisions and to establish systems that will allow taxpayers supplying telecommunications, broadcasting, or electronic services across the EU to comply with the new rules.


Read the EC release (PDF 83.3 KB).

Uniform VAT rules

In order to maintain simple compliance with the new VAT rules, the suppliers of these services would be able to comply with their VAT obligations across the EU by submitting a single VAT return in the EU Member State in which they are identified.


For the customer, the VAT rate would be the same regardless where the supplier is established.




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