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On 1st of January 2015 a change in legislation of the EU VAT system will amend the place of supply rules with regard to B2C supplies of services of telecommunication operators, broadcasters and other electronic service providers established within the EU. The new rules shift the place of supply from the country where the supplier is located to the country where the consumer is located as is already applicable for eservice providers established outside the EU. With the new place of supply rules the EU responds to the existing distortion of competition between EU and non-EU service providers and creates a level playing field between them. The new rules are the result of the ‘VAT Package’ adopted in 2008 intended to bring the treatment of electronic services in line with one of the main principles of VAT, namely that consumption taxes are effectively charged where consumption actually takes place, which is also in line with the OECD principles on the taxation of ecommerce.

The Supply of Telecommunication and Electronic Services via Interfaces and Portals