Press Release: VAT: Commission proposes changes to taxation rules for services supplied to private consumers

The European Commission on 20 July 2005 presented a proposal to change the Value Added Tax (VAT) rules that apply when certain services are supplied to private consumers. The changes were intended to eliminate distortions of competition between EU businesses, and between EU and non-EU businesses, that supply services at a distance to private consumers. They should also ease the VAT burden for businesses by streamlining the current rules as between services provided to traders and those provided to private consumers. The changes would build on the amendments that the Commission had proposed in December 2003 to the rules governing the supply of services where the customer is a trader (see IP/03/1808).

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European Commission: COM(2005)334, 'Amended proposal for a Council Directive amending Directive 77/388/EEC as regards the place of supply of services' http://ec.europa.eu/comm/taxation_customs/resources/documents/COM(2005)334_en.pdf

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