The Economic and Financial Affairs Council (ECOFIN) of the European Union (EU) has reached an agreement on the ''VAT package''. At a meeting held on 4 December, the Council put together a compromise on the application of value added tax (VAT) on the provision of telecommunications, broadcasting and electronic services.
The new measures involve a change in the place of taxation for VAT on services from the place where the supplier is located to that where the customer is situated, with a ''one-stop'' system enabling suppliers to fulfil a single set of obligations in their home Member State, including for services provided in other member states. VAT revenue will be transferred from the supplier's home country to the member states where the consumer is located.
ECOFIN also agreed on an extension to the temporary reduction of VAT rates in five countries: the Czech Republic, Cyprus, Malta, Poland and Slovenia.
Further information:
- Council of the European Union - Press release (versão provisória) http://www.consilium.europa.eu/ueDocs/cms_Data/docs/pressData/en/ecofin/97420.pdf
