V7.275A International services—supplies of broadcasting, telecommunication and electronic ('BTE') services to consumers from 1 January 2015
From 1 January 2015 all supplies of broadcasting, telecommunication and electronic services (collectively known as digital services) to EU customers are subject to VAT where the customer belongs, regardless of the status of the customer (business or consumer) or the location of the supplier (EU or non-EU). The only exception relates to when the services are effectively used and enjoyed outside of the EU. However, as far as telecommunications services are concerned, the use and enjoyment rules were amended with effect from 1 November 2017. From that date, the amendment fixes the place of supply of telecommunications services to private individuals (ie B2C supplies) to the place where the supplier belongs irrespective of where the customer is physically located at the time of supply. From 1 November 2017, so called 'roaming charges' (ie charges to users of mobile telephones where the telephone is used outside of the customer's member state) are nor longer outside the scope of VAT but are subject to VAT in the supplier's member state (see policy paper 'VAT: telecommunication services used outside the EU – use and enjoyment rule removed' published 20 July 2017).
The 1 January 2015 changes to the place of supply rules affects businesses supplying digital services directly to consumers. Supplies to VAT registered business customers in other EU countries were, and continue to be, subject to VAT where the customers belong via the reverse charge procedure.
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