|Author (Person)||Merkx, Madeleine|
|Series Title||EC Tax Review|
|Series Details||Vol.22, No.6, December 2013, p282–288|
|Publication Date||December 2013|
|Content Type||Journal | Series | Blog|
EU VAT applies a method for determining the place of supply of B2B services that directly identifies the jurisdiction of the customer's establishment that uses the service or intangible. The recharge of (part of) the costs relating to that service or intangible to another establishment of the same taxable person does not constitute a taxable supply. The OECD recently assessed another method, the recharge method, that regards a recharge of costs as a taxable supply. This method makes it possible to allocate a service in more than one jurisdiction. This article compares the method currently applied in the EU with the recharge method and discusses which method should be preferred.
|Countries / Regions||Europe|