Most people know that VAT is a consumption tax. But where is a service consumed? For many services, it’s easy to figure it out. If you live in France and ask a local electrician to fix a broken outlet, it is intuitive that French VAT would apply. You might have some doubts if the electrician instead charged Turkish VAT, and rightly so.
For some services, it’s tougher. For example, electronic services often have different place of taxation rules than other services. However it is not always clear when a service should be considered an electronic service. A service can have a significant digital component but a degree of human intervention sufficient to place it in a grey area.
Source Fonoa
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