The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Historically the provision of these types of services caused suppliers the most VAT issues within the EU. This is because a number of EU member states require overseas suppliers providing these services to register for VAT in the country where the services were physically performed. Therefore businesses have suffered increased VAT compliance costs and complexities managing various overseas VAT registrations. Each EU member state has differing VAT compliance requirements, and some countries impose very high interest charges and / or penalties for any errors made with regard to the completion and submission of the VAT returns. This has made managing overseas VAT registrations complicated.
The EU became aware that the existing rules were burdensome as they created the requirement for EU businesses to VAT register in other EU member states and that it might be more cost effective for the 'relevant business person' to account for any VAT due rather than making the supplier register for VAT. As a result, the VAT treatment of these types of services has started to be simplified. A number of the services became 'reverse charge' services with effect from 1 January 2010 and further simplification measures were introduced in January 2011. The 'new' simplified VAT rules are explained below.
The following is the list of the types of services that are included within the 'supplied where performed' category:
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