• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/30/2013

EU - Guidelines under new VAT rules for telecoms, e-services 

October 30: The European Commission (EC) this week issued “practical guidelines” intended to help businesses prepare for the new value added tax (VAT) rules for telecoms and e-services.

The new VAT rules for telecoms and e-services are effective in 2015, at which time, VAT will be charged at the location where the customer is based, rather than the seller’s location.

According to an EC release, a “one-stop shop” will enable telecoms, broadcasting, and e-services businesses comply with all VAT obligations in all EU Member States from the businesses’ country of registration.

The VAT guidelines focus on:

  • Information that will be requested to register and account for VAT
  • Formats in which it will be requested
  • Submission deadlines
  • Practical details on the payments

With this information, businesses will able to prepare their processes and configure their IT tools to collect the information that will need to be submitted from February 2015.

The EC release states that additional guidelines will be published next year on the new place of supply rules.

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