2015 EU VAT Directive
A number of changes to VAT rules on the place of supply of services were agreed by the EU in 2008 to ensure taxation takes place where services, sold over the internet, are consumed. The change to the place of supply of telecommunications, broadcasting and electronic services (BTE or ‘e-services’) to non-business consumers (‘B2C’) is the last of those changes, and will take effect on 01 January 2015.
This change will mean that suppliers of e-services are obligated to account for VAT in the EU member states where their end customer is located and may become liable to register for VAT in those member states.
Suppliers of e-services affected by the new 2015 EU VAT rules changes must determine the place of supply of those services i.e. the location of the consumer, and need to support their decision by collecting two pieces of non-conflicting evidence.
Businesses will be required to keep records of the information/decision-making processes/systems used to determine the place of taxation, and store transaction data for 10 years after a sale.
All 28 EU member states have signed up to the EU VAT Directive.
Please see the following link for more information - EU Commission website