Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/14/2012

European Union - VAT on electronic services effective in 2015 

September 14:   The European Commission reported that on 13 September 2012, a new value added tax (VAT) regulation was adopted.

The VAT regulation—Commission Implementing Regulation (EU) No 815/2012 of 13 September 2012, laying down detailed rules for the application of Council Regulation (EU) No 904/2010, as regards special schemes for non-established taxable persons supplying telecommunications, broadcasting or electronic services to non-taxable persons—is described as "a new milestone on the way to the 'one stop shop' scheduled for 1 January 2015.”


Effective 2015, the VAT on telecommunications, radio and television broadcasting, and electronic services provided by a supplier established in the EU to non-taxable persons also established in the EU will be imposed (charged) in the EU Member State where the customer resides.


The one-stop shop will allow the EU and non-EU businesses to use a web portal in the EU Member States in which they are identified to declare the VAT due in the Member State of the customer.




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