- The provisions in the VAT Rate Directive address two main areas. Firstly, they pertain to new place of supply rules for accessing activities or events through live streaming. Secondly, they relate to the special margin scheme for works of art, collector’s items, and antiques, with the aim of preventing taxable resellers from applying the margin scheme to these goods. The directive allows EU member states to apply reduced VAT rates or a 0% rate to a revised list of goods and services, taking into account the European green agenda. There are limitations on the number of categories that countries can introduce to prevent widespread reduced rate usage. Belgium has temporarily reduced VAT for certain eco-friendly products,
- and the directive also introduced changes to the rules governing the place of supply for streamed activities and the margin scheme. The amended rules aim to ensure that streamed activities are taxed where the recipient is established for VAT purposes. Virtual events will be excluded from the special B2B place of supply rules and will be taxable at the location where the event physically takes place. For B2C situations, the service is deemed to take place where the recipient is located. The margin scheme for works of art, collector’s items, and antiques will be discontinued when resellers have acquired them at a reduced VAT rate. These changes will take effect from January 1, 2025, pending review by the Council of State.
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