Important changes to VAT Treatment of Supplies of Broadcasting, Telecommunications and Electronically Supplied services

On 1 January 2015, there is an important change to the VAT place of supply of services rules. This relates to supplies of broadcasting, telecommunications and e-services (BTE).

Currently, the place of taxation for BTE supplies is determined by the location of the supplier of the services. From 1 January 2015, the place of taxation will be determined by the location of the consumer.

In order to save businesses having to register for VAT in every EU member state where they supply BTE to consumers, they may opt instead to use the VAT Mini One Stop Shop (MOSS) online service. Businesses are able to register from October 2014 and this is live with effect from 1 January 2015.

The rules involve new record keeping as affected businesses will need evidence of both the business status and the location of their customers.

Please click here for a full factsheet on the definition of e-services and for more information about these significant changes.