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VAT changes on virtual events January 2025

Place of supply rules change for online live conferences, training, concerts

The EU is to update the Value Added Tax rules for determining in which country VAT is due – ‘place of supply’ – on entrance fees for virtual events. Member states are required to transpose the new obligations by 1 January 2025. This was concluded by the Council of the European Union on 6th April 2022.

The main change relates to the place of supply for digital live events for B2C where non-tax paying attendees are in a different EU state. The place of supply will switch from the country of the host to the country where the attendee is domiciled.

The changes will move the place of supply for B2B to the country of the even, and confirm B2C similarly.

Attendance Current 2025
Physical (person attends live event) Country where event takes place Country where event takes place
Virtual (attendance online at live event) B2B: country where customer is resident

 

B2C: country where event host resident

B2B: country where customer is resident

 

B2C: country where attendee domiciled

To manage these new rules, event organisers will have to be weary on a number of issues:

  • Is this a live event, and not an electronic service (e.g. not pre-recorded without human intervention on the day)
  • How to track attendees for hybrid events with both physical and virtual attendees
  • Where there are virtual non-taxpayers, should the organiser VAT register in the country of the attendee or use the OSS single VAT registration.

EU VAT reforms

Reform (click for details) Update
2025 VAT registration thresholds equivalence foreign businesses On track
Virtual events VAT rule changes Agreed
2024 Payment providers' seller transaction reporting and bookkeeping obligations On track
Digital Reporting Requirements (DRR), e-invoicing and live transaction reporting Implementation of VAT in the Digital Age?
2023 DAC 7 - marketplace reporting harmonisation On track
Financial Services VAT exemption reform proposals Consultation complete; proposal 2023
Tour operator margin scheme VAT reforms EC undertaking fresh review
2022 EU definitive VAT system Member states not agreed on format
EU reduced VAT rate freedoms Enter into force 6 April 2022
IOSS reforms to prevent double taxation Proposals early 2022
VAT in the Digital Age proposals On track for Q3 2022 detailed proposal
Single VAT Registration in the EU - extension of OSS On track for Q3 2022 detailed proposal
Proposal for VAT treatment of the platform economy On track for Q3 2022 detailed proposal
VAT Gap Initiative Q3 2022
2021 One-Stop-Shop (OSS) single EU VAT return In effect
Ending €22 import VAT exemption; new IOSS return In effect
Marketplace deemed supplier EU VAT reforms In effect
2020 EU four Quick Fixes for VAT In effect
Tax authorities anti-VAT fraud cooperation In effect
Tax Action Plan - 25 VAT and other tax reforms roadmap See 'VAT in the Digital Age' and others
2019 Simplification of e-services VAT compliance and thresholds In effect
Single and multi-use vouchers In effect
2018 Lower e-book and publications VAT rates In effect, although not all EU states have adopted the option
EU Generalised Domestic Reverse Charge VAT Mechanism In effect, although no country has adopted this voluntary option
2015 B2C electronic services VAT reforms - MOSS return In effect

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