SESSION E DESIGN FRAMEWORK FOR FUTURE GUIDELINES ON B2C SUPPLIES OF - - PowerPoint PPT Presentation
SESSION E DESIGN FRAMEWORK FOR FUTURE GUIDELINES ON B2C SUPPLIES OF SERVICES AND INTANGIBLES 17-18 April 2014 Tokyo, Japan Pia Michelsen, European Commission Tax policy perspective Ms Pia Michelsen, Policy Officer, VAT Unit, Taxation
17-18 April 2014 Tokyo, Japan Pia Michelsen, European Commission
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Service Proxy Taxation B2B in general* Customer location Subject to EU VAT if customer is established in the EU. Possible shift of liability (reverse charge). B2C in general* Supplier location Subject to EU VAT if supplier is established within the EU
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Service Proxy Taxation Immovable property Location of immovable property Subject to EU VAT if property is located within the EU Restaurant and catering Place of performance Subject to EU VAT if physically carried
On board restaurant and catering Place of departure Subject to EU VAT if place of departure
Passenger transport Place of performance Subject to EU VAT if and to the extent transport is within the EU. Short-term hiring of means of transport* Place of performance Subject to EU VAT if put at disposal within the EU.
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Service Proxy Taxation B2B admission to events Place of performance Subject to EU VAT if event actually takes place within the EU. B2C cultural, artistic, sporting, scientific, educational, entertainment or similar activities Place of performance Subject to EU VAT if activities actually take place within the EU. B2C goods transport Place of performance Subject to EU VAT if and to the extent transport is within the EU. B2C goods transport within EU Place of departure Subject to EU VAT in all circumstances. B2C long-term hiring of means of transport* Customer residence Subject to EU VAT if customer is resident within the EU.
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Service Proxy Taxation B2C telecom, broadcasting and electronic services* Customer residence Subject to EU VAT if customer is resident within the EU. Payment facilitated through the MOSS (as from 2015). B2C intermediation (agents) Supplier location/location of immovable property/place of performance/customer residence Subject to EU VAT if the underlying supply is taxable within the EU. Certain B2C services (legal advice, advice of consultants, banking, financial and insurance transactions etc.) supplied to place outside the EU* Customer residence Not subject to EU VAT under the general B2C rule when provided by an EU-based supplier if customer is resident outside the EU.
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Service Proxy Taxation Certain B2B and B2C services (those marked by *) the place of supply of which is within the EU Place of effective use and enjoyment Although subject to EU VAT, possible to adjust if service effectively used and enjoyed outside the EU. If option used, the service will not be taxed. Certain B2B and B2C services (those marked by *) the place of supply of which is outside the EU Place of effective use and enjoyment Although not subject to EU VAT, possible to adjust if service effectively used and enjoyed within the EU. If
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Service Proxy Taxing rights ① Hotel Place of performance (B2B and B2C) Country B (also taxable for non-residents) ② Car repair Place of performance (B2C) Country B (also taxable for non-residents) ③ Restaurant Place of performance (B2B and B2C) Country B (also taxable for non-residents) ④ Hotel Wi-Fi Customer residence or hotel (B2B and B2C) Country B (also taxable for non-residents) ⑤ Download of digital movie Customer residence (B2B and B2C) Country A （not taxable for non-residents） ⑥ International phone call Customer residence (B2B and B2C) Country A （not taxable for non-residents）
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record keeping
destination (VAT rate, bad relief and invoicing)
services but is likely to be extended to other B2C supplies in due time
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VAT Directive
Article 58 The place of supply of the following services to a non-taxable person shall be the place where that person is established, has his permanent address or usually resides: (a) telecommunications services; (b) radio and television broadcasting services; (c) electronically supplied services, in particular those referred to in Annex II. Where the supplier of a service and the customer communicate via electronic mail, that shall not of itself mean that the service supplied is an electronically supplied service. Article 359 Member States shall permit any taxable person not established within the Community supplying telecommunications, broadcasting or electronic services to a non-taxable person who is established in a Member State or has his permanent address or usually resides in a Member State, to use this special scheme. This scheme applies to all those services supplied within the Community. Article 369b Member States shall permit any taxable person not established in the Member State of consumption supplying telecommunications, broadcasting or electronic services to a non-taxable person who is established or has his permanent address
Community.
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Listing the main obligations of taxable persons under the special schemes and regulating issues such as registration, deregistration and exclusions
Dealing with the place-of-supply rules and clarifying how to apply them
Standardising declarations and exchanges of data between Member States to ensure interoperability of the MOSS
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published on Commission’s website
will be published on Commission’s website
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