Place of supply rules change for income from B2C 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.
