Reference to the Proposed Council Directive
(5d) To ensure taxation in the Member State of consumption, it is necessary for all services that can be supplied to a customer by electronic means to be taxable at the place where the customer is established, has his permanent address or usually resides. Therefore, it is necessary to modify the rules governing the place of supply of services relating to such activities.
Changes to the articles 53, 54 and 59(a) in the EU VAT Directive 2006/112/EC:
Article 53
The place of supply of services in respect of admission to cultural, artistic, sporting, scientific, educational, entertainment or similar events, such as fairs and exhibitions, and of ancillary services related to the admission, supplied to a taxable person, shall be the place where those events actually take place.
- (10a) in Article 53, the following paragraph is added:
‘This Article shall not apply in respect of admission to the events referred to in the first paragraph where the attendance is virtual.’;
Article 54
1. The place of supply of services and ancillary services, relating to cultural, artistic, sporting, scientific, educational, entertainment or similar activities, such as fairs and exhibitions,
including the supply of services of the organisers of such activities, supplied to a non-taxable person shall be the place where those activities actually take place.
- (10b) in Article 54(1), the following subparagraph is added:
‘Where the services relate to activities which are streamed or otherwise made virtually available, the place of supply shall however be at the place where the non-taxable person is established, has his permanent address or usually resides.’;
Article 59a
In order to prevent double taxation, non-taxation or distortion of competition, Member States may, with regard to services the place of supply of which is governed by Articles 44, 45, 56 and 59:
(a) consider the place of supply of any or all of those services, if situated within their territory, as being situated outside the Community if the effective use and enjoyment of the services takes place outside the Community;
(b) consider the place of supply of any or all of those services, if situated outside the Community, as being situated within their territory if the effective use and enjoyment of the services takes place within their territory.
However, this provision shall not apply to the electronically supplied services where those services are rendered to non-taxable persons not established within the Community.
- (10c) in Article 59a, the introductory words are replaced by the following:
‘In order to prevent double taxation, non-taxation or distortion of competition, Member States may, with regard to services the place of supply of which is governed by Articles 44, 45, 54 (1), second subparagraph, 56, 58 and 59:’;
Source
- Proposed Council Directive
- Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards rates of value added tax
- Council reaches agreement on updated rules for VAT rates
