Digital services affected by the 2015 EU VAT change span across the digital economy. Here, we give some practical example of those digital services affected by the new rules to come into effect on January 1, 2015 (source: revenue.ie).
The downloading of electronic services will be vatable from January 1, 2015. Photo: Getty Images
Example 1 of digital services affected:
Web site supply, web-hosting and distance maintenance of programmes and equipment
Website hosting and webpage hosting
Automated, online distance maintenance of programmes
Remote systems administration
Online data warehousing (i.e. where specific data is stored and retrieved electronically)
Online supply of on-demand disc space
Software and updating thereof
Accessing or downloading software (e.g. procurement/accountancy programmes, anti-virus software) plus updates
Bannerblockers (software to block banner adverts showing)
Download drivers, such as software that interfaces PC with peripheral equipment (e.g. printers)
Online automated installation of filters on websites
Online automated installation of firewalls
Accessing or downloading desktop themes
Accessing or downloading photographic or pictorial images or screensavers
Text and information
The digitised content of books and other electronic publications
Subscription to online newspapers and journals
Weblogs and website statistics
Online news, traffic information and weather reports
Online information generated automatically by software from specific data input by the customer, such as legal and financial data (e.g. continually updated stock market data)
The provision of advertising space (e.g. banner ads on a website/webpage)
Making databases available
- Use of search engines and internet directories
Accessing or downloading of music onto PCs, mobile phones, etc.
Accessing or downloading of jingles, excerpts, ringtones, or other sounds.
- Accessing or downloading of films
Broadcasts and events – political, cultural, artistic, sporting, scientific and entertainment
- Web-based broadcasting that is only provided over the internet or similar electronic network and is not simultaneously broadcasting over a traditional radio or television network
Games, including games of chance and gambling games
Downloads of games onto PCs, mobile phones, etc
Accessing automated online games, which are dependant on the internet, or other similar electronic networks, where players are remote from one another
Teaching that is automated and dependent on the internet or similar electronic network to function, including virtual classrooms
Workbooks completed by pupil online and market automatically, without human intervention
Items not explicitly listed in examples 1-10.
Online auction services (to the extent that they are not already considered to be web-hosting services under example 1) that are dependent on automated databases and data input by the computer requiring little or no human intervention (e.g. online marketplace or online shopping portal).
Internet Service Packages (ISPs) in which the telecommunications component is an ancillary and subordinate part (i.e. a package that goes beyond mere internet access, comprising various elements (e.g. content pages containing news; weather; travel information; games fora; web-hosting; access to chat-lines, etc.)).
Note: Taxamo content is created for guidance only, please consult your local tax advisor.