On 29 October 2013, the European Commission published guidelines to help companies to prepare for the new value-added tax rules regarding telecommunications and electronic services.

The new rules are scheduled to become effective in 2015.

Under the legislation, telecommunications, broadcasting and e-services will be taxed in the country “where the customer belongs” and therefore a company will be taxed in the country where it is registered or the country where it has fixed premises receiving the service. Also, a consumer will be taxed in the country where they are registered, have their permanent address or usually live.

The new VAT system is optional and is available to taxable persons established both within and outside the European Union. If a supplier prefers not to be included in the scheme, that supplier would be required to register in each member state in which services are supplied to customers.