On 7 April 2016, the European Commission (EC) adopted an action plan that seeks to provide a definitive VAT system for cross-border suppliers.
Read more: A Definitive VAT System for Cross Border Supplies?
If your business supplies digital services, you need to know if your services are being sold to individual consumers, to other businesses or to a mixture of both. You also need to know where each of your customers are located when they purchase your digitally delivered service or services.
In this blog, we look at how tax authorities are responding to the growth in the digital economy and highlight a few of the challenges that this ‘destination-based approach to tax’ creates for businesses who supply digitally delivered services to Europe.