New European Union Regulation ref vat application for certain business

European Union Regulation (applicable as of 1 January 2015) In reference to vat application to be taxed in the country where the customer belongs (just for electronic services etc) If you have or are planning to set up a business to create websites or book editing as examples and are or will trade abroad, please be aware of the new European Commission's tax policy strategy that affect any business related to telecommunications, electronic services or even broadcasting. Currently, you charge vat of your country, business here in Spain must charge (21%)vat no matter where the European customer live, but from now on, customers will pay the vat of their country . Fortunately, they keep the vat exception for businesses registered in vat (VIES) which are tax exempt (except Therefore, as a guideline only, we resume information provided by the European Commission for the above mentioned business and that we expect will help you; NEW RULES TO BE APPLIED FROM JANUARY 2015 ARE Type of business: Telecommunications, broadcasting and electronic services will always be taxed in the country where the customer belongs* – regardless of whether the customer is a business or consumer – regardless of whether the supplier based in the EU or outside Please note that ------For a business (taxable person) = either the country where it is registered or the country where it has fixed premises receiving the service. ---- For a consumer (non-taxable person) = the country where they are registered, have their permanent address or usually live. EU BUSINESSES supplying must remember: 1. Business in another EU country No VAT charged. Customer must account for the tax (reverse-charge mechanism). 2. Consumer in another EU country Must charge VAT in the EU country where the customer belongs (not where the business is based). 3. Business or consumer outside the EU No EU VAT charged. Check each country legislation here for levy NON-EU BUSINESSES supplying: 1. Business in the EU No VAT charged. 2. Consumer in the EU (telecoms, broadcasting or electronic services) Must charge VAT in the EU country where the customer belongs.