| Author (Corporate) | European Commission: Press and Communication Service |
|---|---|
| Series Title | Press Release |
| Series Details | IP/02/673 (7.5.02) |
| Publication Date | 07/05/2002 |
| Content Type | News |
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The European Commission has welcomed the Council's adoption, on 7 May 2002, of a Directive and a Regulation to modify the rules for applying value added tax (VAT) to certain services supplied by electronic means as well as subscription-based and pay-per-view radio and television broadcasting. The new rules, based on Commission proposals of 7 June 2000 (see IP/00/583 and MEMO/00/31), will create a level playing field for the taxation of digital e-commerce in accordance with the principles on the taxation of e-commerce agreed at a 1998 OECD Ministerial Conference. The rules will ensure that when these services are supplied for consumption within the European Union, they will be subject to EU VAT, and that when they are supplied for consumption outside the EU, they will be exempt from VAT. The changes modernise the existing VAT rules to accommodate the emerging electronic business environment and to provide a clear and certain regulatory environment for all suppliers, located within or outside the EU. The rules also contain a number of facilitation and simplification measures aimed at easing the compliance burden for business. Member States must implement the new measures by 1 July 2003. |
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| Source Link | http://europa.eu/rapid/pressReleasesAction.do?reference=IP/02/673&format=HTML&rapid=0&language=EN&guiLanguage=en |
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| Subject Categories | Internal Markets, Taxation |
| Countries / Regions | Europe |
