Vertex CyberTax News

Proposed Package Changes for Value Added Tax

The Economic and Financial Affairs Council (ECOFIN Council) has released a draft of their VAT Package proposals.

The proposals would change the VAT rules to ensure that the supply of services to taxable persons in the EU would be taxed at the place where the customer has established their business. In the case of non-taxable customers, the tax rate would generally be determined by the physical location of the service supplier’s business.

If adopted the effective date of these changes, with some exceptions, would be 1/1/2010.

Also, effective 1/1/2010 would be the extension of the European Sales Listing (ESL) to include services. This may result in a significant additional compliance burden.

Further proposed changes that would be effective 1/1/2015 would include the implementation of new place of supply rules for telecoms, broadcasting and electronically supplied services, and the optional mini one-stop scheme for these services.

Sign up here for the CyberTax News and receive monthly news updates from Vertex - featuring the latest news and research to hit the Tax Cybrary.