Press Release: VAT package: Commission welcomes adoption by the ECOFIN Council of new rules on the place of supply of services and a new procedure for VAT refunds

The European Commission welcomed the adoption by the Council of legislation implementing new rules on the place of supply of services. The legal texts adopted on 12 February, 2008, are a follow-up to the political agreement on the so-called VAT package reached on 4 December 2007 (see PRES/07/281). They will ensure that VAT on services will accrue to the country of consumption, and will establish a new procedure for claiming VAT refunds to ensure quicker processing.