The new place of supply rules
As of 1 January 2015, telecommunications, broadcasting or electronic services will be taxed in the country where the customer resides or is established, irrespective of whether that customer is a taxable VAT entrepreneur or a non-taxable person and irrespective of where the supplier itself is established. This particularly involves a change for services supplied to non-taxable persons (including consumers) by entrepreneurs established within the EU.
The objective of these explanatory notes is to provide a better understanding of legislation adopted at EU level and in this case principally Council Implementing Regulation (EU) No 1042/2013 of 7 October 2013 amending Implementing Regulation (EU) No 282/2011 as regards the place of supply of services.
Published almost nine months before the date on which the new rules for the place of supply of telecommunications, broadcasting and electronic services will start to apply which is 1 January 2015, the explanatory notes are expected to allow Member States and businesses to better prepare for and adapt to the upcoming changes in time and this in a more uniform way.