VATupdate
VAT

VAT on electronic services provided by a foreign group of company

It is common in a multinational group setting for companies to supply electronic services to each other. Where electronic services are supplied by a non-resident company to a resident company for the exclusive consumption by the resident company and the two companies form part of the same group of companies, the supplier of the services does not need to register for VAT as such services do not constitute an electronic service as defined.

Source: PKF

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