The EU has agreed to sweeping changes to the way electronic services are taxed. From 2015, VAT will be applied to online services in the country in which they are consumed, rather than the location of the company which provides them.
Currently, many high profile online service providers provide their services from Luxembourg, which, at 15% has the lowest rate of VAT in the EU. This has prompted the changes announced.
The changes will affect all providers of e-services, including online retailers, media and telecoms companies, and will lead to a complex, and what is likely to be administratively burdensome, set of rules.
To discuss these changes and their likely impact on your business, please contact Vaughn Chown using the online form below.