B2C place of supply change: telecommunications, broadcasting and electronic services

From 1 January 2015, telecommunications, broadcasting and electronic services will always be taxed in the country where the customer belongs*:

  • whether customer is a business or consumer
  • whether supplier based in the EU or outside

* For a business (taxable person) = either the country where it is registered or the country where it has fixed premises receiving the service.

* For a consumer (non-taxable person) = the country where they are registered, have their permanent address or usually live.

Legislation now – and after 2015

Sales to final consumers B2C – overview

CURRENT RULES

Telecommunications, broadcasting & electronic services (1)

Services supplied by/to

EU consumer
in EU country 1

EU consumer
in EU country 2

Non-EU consumer(3)

EU supplier
(EU country 1)

Taxable in EU country 1

Taxable in EU country 1

No EU VAT

EU supplier
(EU country 2)

Taxable in EU country 2

Taxable in EU country 2

No EU VAT

Non-EU supplier

Taxable in EU country 1(2)

Taxable in EU country 2(2)

No EU VAT

 

  • (1) One-time registration (MOSS) available for electronic services.
  • (2) Taxable in country of effective use & enjoyment, if this is not the country where the customer belongs.
  • (3) Unless used in a country that applies the effective use & enjoyment rules.

RULES FROM 2015

Telecommunications, broadcasting & electronic services

Services supplied by/to

EU consumer
in EU country 1

EU consumer
in EU country 2

Non-EU 
consumer(2)

EU supplier
(EU country 1)

Taxable in EU country 1

Taxable in EU country 2(1)

No EU VAT

EU supplier
(EU country 2)

Taxable in EU country 1(1)

Taxable in EU country 2

No EU VAT

Non-EU supplier

Taxable in EU country 1(1)

Taxable in EU country 2(1)

No EU VAT

  • (1) One-time registration (MOSS) available.
  • (2) Unless used in a country that applies the effective use & enjoyment rules.

Changes to one-time registration scheme (MOSS) from 2015

Online declaration/payment

For supplies to consumers, both EU and non-EU businesses can use a web portal in the EU country where they are VAT-registered to declare and pay the VAT due in their customer’s EU country.

Access : Forum Global Indirect Tax Management for additional information

From: Telecommunications, broadcasting & electronic services – European commission.

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