Changes To The VAT Rules - Telecommunications, Broadcasting And Electronic Services: Introduction To The Changes

With effect from 1 January 2015, telecommunications, broadcasting and electronic services supplied to non-taxable persons (B2C) which are established, have their permanent address, or usually reside in the EU will be taxable in the Member State of the customer.

The rule which currently applies to non-EU suppliers of e-services will be extended to all suppliers (EU and non-EU) of telecommunications, broadcasting and e-services to private consumers.

As a result, the VAT rules and rates in the country of establishment of B2C suppliers of telecommunications, broadcasting and e-services will no longer be relevant, and suppliers will have to charge VAT to their customers at the rate applicable in their customer's EU Member State.