Main subject: TBE services – place of supply and collection mechanism
Who should continue reading: EU and non-EU Businesses performing B2C supplies of Telecommunications, broadcasting and electronic services in the EU
Summary: Before 1 January 2015 the place of supply of TBE services supplied by non-EU businesses to EU final consumers was already in the EU. Non-EU businesses could opt for OSS as a collection method.
Already from July 2013, non-EU businesses supplying telecommunications, broadcasting or electronic services (TBE services) to final consumers (B2C) in the European Union (EU) should charge VAT in the Member State (EU MS) in which the customer is established, has his permanent address or usually resides. As a collection mechanism non-EU businesses could opt to use the so-called One Stop Shop (OSS) which enabled non-EU businesses to fulfill their VAT obligations in a single Member State instead of having to be registered in each EU MS where they had final consumers. The OSS registration had to be done online and was pretty straightforward.
However, B2C supplies of TBE services by EU businesses were until 31 December 2014 taxed in the country where the supplier was established. This created a competitive advantage for businesses established in jurisdictions with lower VAT rates over businesses established in other EU MS. For that reason, on 1 January 2015 new rules to determine the place of supply for B2C TBE services entered into force.
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