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Practical guidelines for businesses on new VAT rules

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The Commission has published practical guidelines to prepare businesses for the new VAT rules for telecoms and e-services, which will enter into force in 2015. The aim is to help businesses to be fully prepared on time for the change-over, whereby VAT will be charged where the customer is based, rather than where the seller is. A One Stop Shop will enable telecoms, broadcasting and e-services businesses comply with all of their VAT rules and obligations in all Member States from their country of registration. This is consistent with the Commission’s goal of reducing tax obstacles and administrative burdens for cross-border companies in the Single Market. The guidelines focus on the information that will be requested to register and account for VAT, the formats in which it will be requested, the submission deadlines, and all practical details on the payments. With this information, businesses will able to properly prepare their processes and configure their IT tools to collect the information that they will have to submit from February 2015. Additional guidelines will be published next year on the new place of supply rules.

Source: European Commission


Additional information

The Commission adopted the Action Plan on VAT – Towards a single EU VAT area in April 2016. The plan sets out immediate and urgent actions to tackle the VAT Gap as well as strategic long term solutions to overcoming VAT fraud and improving VAT collection across the EU. It describes the necessary steps that need to be taken towards a single EU VAT area, and how to adapt the VAT system to the realities of the internal market, the digital economy and the needs of SME’s.

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