- VAT Committee, Working Paper No. 814 (July 31, 2014)
- Minutes of the meeting: 4. QUESTIONS CONCERNING THE APPLICATION OF EU VAT PROVISIONS
4.2 Origin: Commission
Reference: Articles 14(2)(c), 28, 46, 58 and 306-310 of the VAT Directive Articles 7(3)(u) and 31 of the VAT Implementing Regulation
Subject: Treatment of online supplies made by a travel agent to final consumers
(Document taxud.c.1(2014)2806510 – Working paper No 814)
In regard to the special scheme for travel agents as laid down by Articles 306 to 310 of the VAT Directive, the VAT Committee by large majority agrees that transactions carried out by a travel agent acting in his own name for taxable or non-taxable persons, shall only be covered by that special scheme if the travel agent has established his business within the European Union or has a fixed establishment there from which he has carried out the supply of the services in question.
- Minutes of the meeting: 4. QUESTIONS CONCERNING THE APPLICATION OF EU VAT PROVISIONS
- VAT Committee – WP 906 – Interaction between electronically supplied services and intermediation services – June 6, 2016
- Minutes 107th VATCOM meeting 08-07-2016: 4. NEW LEGISLATION – MATTERS CONCERNING THE IMPLEMENTATION OF RECENTLY ADOPTED EU VAT PROVISIONS
4.1 Origin: Commission
References: Articles 44, 46 and 58 of the VAT Directive, Article 7(3)(t) and (u) of the VAT Implementing Regulation
Subject: VAT 2015: Interaction between electronically supplied services and intermediation services and initial discussion on the scope of the concept of intermediation services when taken in a broader context
(Document taxud.c.1(2016)3297911 – Working paper No 906)
The Commission services briefly introduced the Working paper. There had been a first attempt to draft guidelines after oral exchanges on the issue during the 102nd meeting in March 2015 but some delegations had in their replies requested further discussions based on an analytical Working paper before they would take a position. The present Working paper focuses on intermediation services supplied directly to final consumers (B2C supplies) where there could arise problems of conflicting application of Articles 46 and 58 of the VAT Directive. In the Commission services’ view an intermediation service supplied directly to a non-taxable person where the intermediary acts in the name and on behalf of another person should be taxable at the place of supply of the underlying service to which the intermediation service relates. As it is the very nature of intermediation that it relates to an underlying transaction the place of taxation of both transactions should be the same. Cases of
double or non-taxation could thus be reduced because the application of the rules would be simplified and legal certainty for all actors – including tax administrations
– would be strengthened.
In the Working paper delegations were additionally invited to present their views in a more general way on the scope of intermediation services. In particular, their
suggestions were sought on which could be decisive indicators helping to identify intermediation services in order to draw a line between those services and others not
qualifying as intermediation and with a view to avoid double or non-taxation.
More than half of the delegations took the floor. A few delegations did not share the Commission’s analysis and would see certain intermediation services rather as electronically supplied services if the criteria for falling under Article 58 are fulfilled. One of these delegations explained that there was a problem if market places were regarded as not supplying electronically supplied services because that would prevent them from using the mini one-stop-shop (MOSS). Another of these delegations pointed to problems in following the Commission services’ logic when very small businesses collaborated with booking platforms and Article 47 of the VAT Directive would come into play and was seconded by yet another one who asked the Commission services to look more in depth into repercussions for SMEs.
One delegation stated that it in principle agreed with the Commission services’ view but for practical reasons would prefer the use of MOSS. Apart from one delegation
stating not to have reached a final opinion, all other delegations agreed with the Commission services’ views as set out in the Working paper.
The Chair concluded that the drafting of guidelines would be attempted and that these would also make clear what constitutes intermediation and what not.
- Minutes 107th VATCOM meeting 08-07-2016: 4. NEW LEGISLATION – MATTERS CONCERNING THE IMPLEMENTATION OF RECENTLY ADOPTED EU VAT PROVISIONS
- VAT Committee – WP 947 Services provided by an electronic platform connecting for remuneration, by means of a smartphone application, a driver using his own vehicle with persons who wish to make urban journeys The significance of the VAT identification number (April 3, 2018)
- WP 961 – Minutes 111th VATCOM meeting 30-11-2018 :5.3 Origin: Estonia
References: Articles 44, 45, 46, 48 and 58 of the VAT Directive, Article 18 of the VAT Implementing Regulation
Subject: Services provided by an electronic platform connecting for remuneration, by means of a smartphone application, a driver using his own vehicle with persons who wish to make urban journeys
The significance of the VAT identification number – continuation of discussions at the 110th meeting (Document taxud.c.1(2018)1735106 – Working paper No 947)
The Commission services briefly summarised the discussions during the previous meeting in which exchanges on the second part of the Working paper about the significance of the VAT identification number for identifying the status of the customer had been concluded. Thereupon, draft guidelines on the matter had been prepared and a written procedure for obtaining agreement launched with the deadline of 5 December 2018 for submitting replies.4 The initial exchanges with delegations on the first part of the Working paper dealing with a specific set of services provided by electronic platforms, however, had remained rather general. Many of the delegations taking the floor had stated that their administrations had not yet reached firm views on the issues raised and that internal reflections were ongoing. Therefore, it was important to continue discussions on that part.
The Commission services went again through the different questions set out in section 3.1.2 of the Working paper before opening the floor for delegations to present their overall position on all of them.
Nearly half of the delegations took part in the discussions. Whilst there was consensus that from the perspective of the customer the driver in the scenario at issue provided a transport service, delegations held diverging views on how to qualify the relationships platform/customer and platform/driver. A few delegationsm mentioned that they had not yet reached a formal position. Others maintained that when defining “electronic services”, the means for providing a service had prevailed in the analysis without paying sufficient attention to the nature of the service. Reacting to a wish for establishing guidelines voiced by a few delegations, others thought that was premature considering the constant evolution of different business models. They preferred to be cautious and first examine the issues further, possibly in the Group on the Future of VAT, as one delegation suggested. Another delegation preferred awaiting the outcome of work undertaken by the OECD on the matter.
The Chair concluded that administrations already face or will soon have to face the issues discussed. For further work on the matter, her services would heed the call for
a cautious approach in view of constantly evolving business models. As it would obviously be impossible to solve all kinds of business models, they would rather
look into certain types of platform services and would try to draft some guidelines to which delegations could react. Such guidelines might help focus discussions in order
to advance and arrive at a common position as to the VAT treatment of the services involved.
- WP 961 – Minutes 111th VATCOM meeting 30-11-2018 :5.3 Origin: Estonia
- Group on the Future of VAT, GFV No. 086, VAT Treatment of the Sharing Economy (March 14, 2019)
- Group on the future of VAT – No. 97 – VAT treatment of the platform economy (April 16, 2020)
- VAT Expert Group, VEG No. 090, VAT Treatment of the Platform Economy (April 16, 2020)
- VAT Expert Group – VEG 095 VAT treatment of the platform economy: contribution of the VEG (Spetember 29, 2020)
- Group on the future of VAT – Subgroup on platforms (2021)
- Group on the Future of VAT, GFV No. 122 – VAT and the platform economy – specific issues – follow up (April 22, 2022)
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