The first part of this two-piece article titled “Virtual Activities: EU VAT’s Effort to Recompose the Broken ‘Unity of Action, Time and Place’ – Part I” provided an overview of the new place of supply rules for services relating to virtual activities introduced in the VAT Directive by the compromise text for updates on VAT rates agreed upon by the EU Council on 7 December 2021. The first part also explained the relevant legal background surrounding these changes. This second part will instead host the author’s comments and critical reflections on the new place of supply rules for services relating to virtual activities.
Author’s Comments on the New Place of Supply Rules for Virtual Activities
The updates on the EU VAT place of supply rules aim to establish a feasible approach for determining the place of supply of services relating to virtual activities. This issue is quite pressing since entertaining virtual events such as online conferences, live-stream lectures, on-demand training courses, sport live sessions are all booming during the COVID-19 pandemic. Unlike in face-to-face events, there is no event location where the host and participants meet virtually. The EU legislative initiative in this regard is therefore welcome.
Source Kluwertaxblog
See also
- Virtual Activities: EU VAT’s Effort to Recompose the Broken ‘Unity of Action, Time and Place’ – Part I
- Ecofin agreement on VAT rates also includes changes to the ”Place of Supply” with regard to services supplied via electronic means
- ECJ Case C‑568/17 (Geelen) – Judgment – Live interactive erotic webcam sessions – Place where a service is actually performed
