RD291 - ETNO Reflection Document on the Practical Application of the New B2B Place of Supply Rules applicable from 2010

ECOFIN adopted a VAT Package of proposals on 12th February 2008 which will bring in some changes in the way VAT is accounted for in Member States, principally with effect from 1st January 2010.
Chief amongst those changes will be that B2B supplies will be taxed under a general reverse charge so that when services are supplied cross border, and when supplier and recipient are in business, the VAT will be taxed according to where the recipient (customer) is established. ETNO welcomes the change to the general reverse charge principle but considers that some issues arise as a result of this which requires further guidance from the Commission to ensure a smooth and harmonised implementation of the new rules. In this paper, ETNO seeks to identify those issues and to make recommendations on how best to practically deal with those issues.