Change in Place of Supply for Certain Virtual Services from 2025

Starting in 2025, the place of supply for virtual cultural, artistic, sporting, scientific, educational, or entertainment services will change. Currently, the law has an exception to the main rule regarding the place of supply for these services.

Right now, these services are taxed at the location where the events or activities actually take place. This rule applies to both B2B and B2C services, regardless of whether you attend the events or activities physically or virtually.

However, if you access an activity or event virtually, the current rules regarding the place of supply no longer align well with the concept that VAT should be levied where the service is actually consumed. You consume these services not at the place where the events or activities take place, but usually at your place of establishment, residence, or habitual residence.

From 2025, VAT for virtual cultural, artistic, sporting, scientific, educational, and entertainment services will be based on the location of the customer. This is a change from the current regulation, where VAT is now levied at the place where the event or activity takes place.

For B2B services, the place of supply for virtual services from 2025 will be where the customer is established or where their fixed establishment is located.

For B2C services, an addition will be made for determining the place of supply if it concerns activities that are streamed or otherwise made available virtually. For these virtual services, the place of supply will be where the non-taxable person is established, resides, or has their habitual residence. As a supplying business, you can use the one-stop shop (OSS) system to avoid multiple VAT registrations.

Questions or need help with your VAT processes?

We are ready to tackle your VAT challenges head-on. From addressing your questions to handling your reporting, we're here for you. You can contact us using the form below.

11 Jul 2024 at 10:54 am
2 min
Published by:
Daniëlle van der Meulen-Idema
Sr. VAT Specialist
VAT registrations
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