Modifications concerning VAT planned for 2010
I. New rules for VAT refunds to be effective from January 1st 2010 for companies established in the European Union (Council Directive 2008/9/EC of 12 February 2008)
From January 1st 2010 companies established in the European Union will be able to make an electronic refund application in the country in which they are established for VAT which has been charged on purchases made in all of the other countries of the European Union (when the company is not liable for VAT in these countries).
It would be advisable for all companies, including French ones, to consult us for these applications.
II. New rules concerning the place of supply of services to be effective January 1st 2010 (Council Directive 2008/8/EC of 12 February 2008)
The taxation of services will take place in:
- The country in which the buyer (the beneficiary of the service) is established if he is liable for VAT (the buyer should reverse charge the VAT).
- In the country where the service provider is established if the buyer is not liable for VAT (individuals).
- However, specific rules have been made for certain services (transportation, cultural and artistic services…, and immaterial services to entities not liable for VAT established outside the European Union…).
III. Extension of the single window office to service providers in the European Union and to telecommunications, broadcasting or electronic service providers starting from January 1st 2015
At present only service providers established outside the European Union who supply electronic services to non-taxable persons in the EU can have access to the single window office that allows them to identify themselves in a sole country of the EU and to make electronic VAT declarations which detail the amounts of sales made in each country of the EU.
Starting from January 1st 2015 the single window office will be available to service providers established both in and outside the EU who supply electronic services and telecommunications and broadcasting services to persons who are not liable for VAT in the EU.