VAT on eServices

This requirement applies when the customer is either a consumer or a business, and it applies to vendors regardless of location.

For a business customer, also known as the taxable person, the customer's EU country is one of these options:

• The country where the business customer is registered.
• The country where the customer has fixed premises receiving the service

No VAT is actually charged. The customer must reconcile the tax by using the reverse charge mechanism.

For a consumer customer, also known as the non-taxable person, the EU country is the country in which the consumer customer is registered, has a permanent address, or usually resides. The VAT is charged based on this country and not where the vendor is based.