CHANGES TO EU VAT

摘要

On 1 January 2015, a change was made to the EU's place of supply rules for business to consumer (B2C) supplies of telecom, broadcasting and electronic services (TBES). In a major regulatory reform, VAT is now due in the country of the customer purchasing TBES (previously, VAT was due in the country where the supplier was established). As a result, businesses now have to gather evidence to confirm where customers belong -and also account for VAT in anything up to 28 EU member states. The change is intended to deal with the 'Luxembourg' issue - where TBES suppliers base themselves in low VAT regimes to the cost of Exchequers around Europe. In the Autumn Statement, the Chancellor estimated that the change would generate an extra £300m revenue for the UK in 2015/16.