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10.02.2010 The essential changes to EU legislation on Value Added Tax (“EU VAT”), which is known as “The VAT Package”, are in force since on January 1st, 2010; these changes are applicable to the following matters: - Changes concerning a place of supply of services; - New requirements of reporting; - A new regime for the intra- Community refunds of VAT. According to these new changes a place of supply of services by one European company to another is not the country of residence of the supply, but on the contrary, now it is a country where the customer, who acquires service, is registered. In this connection the reporting order of VAT in the EU countries has been changed. Now the companies that receive services from other European companies should make VAT reports on the principle the “reverse charge” as well. These changes will make possible to demand the foreign VAT return electronically in their country. |
