EU place of supply changes for virtual event service providers - double taxation?

On 1 January 2025 EU VAT rules change for business providing virtual and streaming services. Example could be where an conference/event is streamed online (with a fee for viewing) or distance learning with a live element (again paid for). Currently the general B2C rule applies - so VAT is due in supplier's country. However, from 1 Jan 2025, EU countries will apply the 'where consumed' rule and VAT will be accountable in the country where the service is consumed. To my knowledge, HMRC has not yet published any guidance around these EU rules changes. If HMRC does not follow the same rule, there will be double taxation: For a B2C supply to EU customer, HMRC expects UK VAT to apply. However, the EU country will expect EU VAT to apply. Has HMRC published anything to address this issue?

 

Hi. HMRC has not yet published any guidance regarding these changes. However if these EU changes have an effect on how VAT is accounted for in the UK then this guidance will be published on our website www.gov.uk before these changes take place. Thank you .

Good afternoon HMRC team, is there any update with regards to this matter? As I understand if the HMRC doesn't publish any guidance/ changes based on the current VAT rules in the UK and the expected new VAT rules in the EU there will be double taxation for online courses. Based on the HMRC's current guidance for UK companies that sell to the EU, for the B2C sales the VAT rate of the supplier country is applicable ie UK VAT shall be applied and this is in line with the current EU VAT rules. However, under the new VAT rules of the EU, those sales shall be subject to VAT based on the customer's country thus under the new rules the supplier shall collect and pay VAT both in UK and EU. Please clarify what the case is.

Hi ,
 

Can you reference the guidance you are looking at on gov.uk website and  reference the guidance regarding the changes to the rules in the EU . Thank you .

EU legislation (effective 1/1/2025) Article 54 Directive 2006/112/EC 1.The place of supply of services and ancillary services, relating to cultural, artistic, sporting, scientific, educational, entertainment or similar activities, such as fairs and exhibitions, including the supply of services of the organisers of such activities, supplied to a non-taxable person shall be the place where those activities actually take place. Where the services and ancillary services relate to activities which are streamed or otherwise made virtually available, the place of supply shall, however, be the place where the non-taxable person is established, has his permanent address or usually resides. UK VAT (VAT due where supplier belongs) - section 7A(2)(b) of VATA94

Such B2C services are deemed 'general rule' services according to https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a#sec6