The current EU VAT Directive sets the place of supply of services related to immovable property as in the country of the property. This ‘special rule’ differs from the ‘general rule’ for the supply of services, which puts that place of supply as the location of the customer. This destination principle was set as part of the 2010 EU VAT Package reforms.
The EC wishes to clarify the understanding of these rules, including clearer definitions of the immovable property and related services. These is due to be implemented in 2017. To aid the process, the EC is inviting contributions on the supporting guidelines from industry, practice and any other interested parties. This will be finalised by the summer of 2015 to give member states the opportunity to implement the rules locally. This includes discussions later this year at Fiscalis.