Rules for suppliers of telecommunications, broadcasting and e-services are changing.
From 1st January 2015 there will be a complete change to the rules regarding VAT on sales of telecommunications, broadcasting and e-services by businesses in one EU Member State to private consumers in another EU Member State (“intra EU B2C supplies”). These services are currently taxed in the country where the supplier is based, but from 1st January they will be taxed where the customer is based. So, for example, a Danish supplier with customers in Denmark, Sweden and UK will have to charge at the correct rate and account to the tax authorities for VAT in Sweden and UK as well as Denmark.
To make this process easier each EU Member State will operate a “One Stop Shop” for these services from 1st January 2015. Suppliers can register in their own country and account for VAT in each country where they have sales direct with their own country VAT authorities on a single VAT Declaration.
Suppliers will have to register for this service, and any businesses affected by this should check with their own country’s VAT authorities when they will able to do this.
Registration for the One Stop Shop is not compulsory, but it replaces the need for the supplier to register for VAT separately in every country where they have customers, so it will be much easier to use.
Examples of the services affected include:
- Telecommunications – Fixed and mobile telephone services, videophone services, paging services, facsimile, telegraph and telex services, access to the internet and worldwide web.
- Broadcasting – Radio and television programmes transmitted over networks and live broadcasts over the internet.
- e-services – Video on demand, downloaded applications (apps), music downloads, gaming, e-books, anti-virus software and online auctions.
More information will become available later.