Did you know that as of January 1, 2015, the VAT legislation for services provided to foreign individuals within the European Union (EU) is changing? It is an important change that will affect us, but also you. To prepare ourselves, we have explored what the legislative change entails. We would like to share this as a fun fact with you!
What changes from 2015?
In short, the current legislation for private European customers will be adjusted on the following points:
The most significant change is that the place of taxation from 2015 will be the country where the customer resides. This means that the tax rate of the respective country must be invoiced. It is no longer the standard VAT rate of the Netherlands (21%), but for a German customer, 19% must be calculated, for a French customer, 20%, etc. This applies to all countries within the EU and the rates vary significantly (15% to 27%).
The customer's address must be established in 2 ways (for example, the residential address and the customer's IP address) and this information must be kept for 10 years.
When filing a tax return, you will deal with the tax authorities of different countries.
Prepare for it!
We would like to remind you to prevent any unpleasant surprises from January 1, 2015. How you prepare for this change is up to you and may vary by customer. Important: the legislative change only affects individuals, so nothing changes for doing business with companies.
