- Council Directive (EU) 2022/542 implements new VAT place of supply rules for live virtual events
- Live virtual events will be deemed to be supplied in the jurisdiction where the attendants are established, have their permanent address, or usually reside
- EU member states have the possibility to apply reduced rates of VAT to certain virtual events
- The lack of clear rules on VAT treatment of virtual activities has led to different interpretations across the EU
- The new rules aim to clarify and harmonize the VAT place of supply rules for online events within the EU
- Virtual events in a B2C context will be deemed to take place where the non-taxable person attending the event is established
- Virtual events in a B2B context will be subject to the general place of supply rule for B2B services
- Member states may apply reduced rates on admission to certain events that are live-streamed
- Providers of online events should assess the potential impact of these changes
- The changes may lead to double taxation for events hosted outside the EU
- Providers may need to register for VAT purposes in all EU member states where attendees are located
- Providers should consider opting for a One Stop Shop (OSS) registration
- Providers should also consider the implications for commercial agreements, customer onboarding processes, and invoicing procedures.
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
