As of January 1st, 2015 new VAT regulations have been put in place. This article explains these new rules.


The place of supply rules relating to where VAT is both collected and remitted for certain services was changed starting January 1st, 2015.


This change affects businesses providing telecommunications, broadcasting or electronically supplied services to non-taxable or private customers in EU Member States.


Until 2015 , these services were taxed where the business supplier was established. However, starting January 1 2015, businesses will need to charge and account for VAT in the EU country where the customer belongs/where the service is consumed.


The changes will not affect businesses supplying services on a business-to-business (“B2B”) basis. The rules regarding B2B supplies of services will not change. The changes will affect EU businesses supplying Telecommunications, Broadcasting and E-services direct to a customer that is not in business.



Note: AppMachine is an EU Company


Source:  


http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm