The Dutch Supreme Court issued a decision on 17 July 2021 concluding that the place of supply rule for intermediary services applies even where the activities performed under the relevant contract are not subject to VAT.
Under the VAT rules, an intermediary for VAT purposes is defined as a person/entity acting as a third party in arranging or facilitating the making of supplies. The place of supply for intermediary services is the place where the underlying transaction is taxable.
B2C intermediary services are subject to VAT in the country where the underlying supply (i.e., the supply for which parties conclude a contact) is subject to VAT. But what if there is no underlying supply subject to VAT? Is the special place of supply rule for intermediary services still applicable, and if so, where is the place of supply?
Source
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