Broadly the new rules (to take effect from 2010) will change the place of supply of “business to business” services to the place where the customer is situated. Supplies of services to consumers will continue to be where the supplier is established. However, there will be special rules (“one stop shop”) for telecoms, broadcasting and electronic services to consumers (delayed until 2015).
The package will also introduce a much needed improved system for businesses seeking refunds of VAT paid in other Member States. The EU VAT refund system will become fully electronic from 1 January 2010 thus ensuring a quicker and easier process. This is a very welcome change. For those of you who are familiar with the current paper system, it is extremely burdensome and can take 6 months or more to obtain VAT refunds from other countries. Under the new system, interest will be paid if Member States are late making refunds!
We will keep you informed of the changes as these become available.
Date: 15th February, 2008
Articles from this Author
20th July, 2010
Potential good news for Charities - VAT
22nd June, 2010
Emergency Budget 2010 - VAT
18th June, 2010
Holiday homes - VAT refund scheme for DIY housebuilders
15th June, 2010
Charity Advertising - ‘Pay-Per-Click’ services (PPC)
Contact a Private Client Partner
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole