VAT on eServices

VAT on eServices, such as telecommunications, broadcasting, and electronic service is taxed in the customer's EU country. 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.