Brussels, 19/12/2014 (Agence Europe) - Taxation Commissioner Pierre Moscovici has welcomed the new VAT rules for online cross-border services that were unanimously voted through by the member states in 2008 and come into force on 1 January 2015 (see EUROPE 11112). “So far, a lot of VAT revenues on on-line cross-border purchases have gone to low-tax member states where large e-firms are based. As of January, new rules will correct this distortion and ensure fair distribution of tax revenues in Europe, as well as creating a level playing field between businesses. Many member states will therefore see their VAT revenues rise,” said Moscovici.
On 1 January 2015, VAT on all telecoms, broadcasting, television and e-services will be due in the place where the customer is registered rather than the place where the supplier is registered. The standard rate of VAT ranges from 15% to 27% throughout the European Union and companies often register in low-VAT countries. A one-stop shop will enable companies providing services online to customers in a number of EU member states to make their VAT returns and pay their VAT in their own member state. (EL)