- The CJEU previously identified an intermediary in the delivery of interactive video chats as providing an entertainment service.
- Under the EU Principal VAT Directive (PVD) at the time, this was subject to VAT where the service was performed.
- In Westside Unicat, the role of the intermediary was split and had to be assessed in light of changes made to the PVD.
- Westside Unicat made a recording studio available to performers and acted as their agent in dealings with StreamRay USA Inc.
- StreamRay contracted with customers for the delivery of the video chats.
- The PVD stated that admission to entertainment events should be subject to VAT where those events actually took place.
- The CJEU determined that this rule referred to marketing the right of admission to an event to the public.
- Services provided by Westside Unicat to StreamRay were not concerned with granting customers the right to access content.
- Westside Unicat was not obliged to charge Romanian VAT on its services to StreamRay.
Source: taxscape.deloitte.com
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.
