- The Dutch House of Representatives has adopted the bill on additional margin scheme and the location of virtual services in VAT on September 21, 2023.
- The bill aims to implement the mandatory parts of the VAT rate directive and includes changes to the additional margin scheme and provisions on the location of services for VAT purposes for certain services provided virtually to a customer.
- The changes must be implemented by December 31, 2024, and will be applicable from January 1, 2025.
- The current setup of the additional margin scheme can cause distortions of competition among member states. Therefore, the application of the additional margin scheme will not be possible if the reseller has purchased antique, art, or collectible items at a reduced rate.
- The second amendment concerns cultural, artistic, sporting, scientific, educational, or entertainment services provided virtually. These services will be taxed in the location where the customer is established or has their residence or usual place of stay.
Source: taxlive.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
