• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/8/2014

EU - Changes to VAT place-of-supply rules in 2015 (e-gaming) 

April 8:  The place-of-supply rules relating to where value added tax (VAT) is both collected and remitted for certain services will be changing within the European Union, effective 1 January 2015.

This change will affect businesses providing:

  • Telecommunications
    • Fixed and mobile telephone services
    • Videophone services
    • Access over the internet

  • Broadcasting
    • Radio and television programmes transmitted over a network
    • Live broadcasts over the internet

  • eServices
    • Downloads of applications
    • Downloads of games
    • Web hosting
    • Distance learning
    • Downloads of music or films
    • Downloads of eBooks

The changes will not affect businesses supplying services on a business-to-business (B2B) basis.

From 1 January 2015, the place of supply of electronically supplied services provided by a business established in the EU to a person (other than a business) will change from being the place where the supplier belongs to the place where the customer belongs.

Read a 2014 report prepared by KPMG: Changes to the place of supply rules in 2015

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KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


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