Press Release: VAT: The European Commission proposes to extend the Directive on electronically delivered services

The European Commission on 16 May 2006 proposed to extend the period of application of the 'e-commerce VAT' Directive (COM (2002) 38) to 31 December 2008. Without this extension, the rules for services supplied by electronic means as well as to radio and television broadcasting services would revert to those prevailing prior to the changes introduced by the Directive. This would mean that EU suppliers would be subject to VAT even for services supplied to clients outside the EU and they would face competition within the EU from suppliers in third countries that would not be subject to VAT at all. The proposal did not contain any other change.

• Primary Source

European Commission: PreLex: COM(2006) 210: Proposal for a Council Directive amending directive 2002/38/EC as regards the period of application of the value added tax arrangements applicable to radio and television broadcasting services and certain electronically supplied services, 16.5.06 http://ec.europa.eu/prelex/detail_dossier.cfm?CL=en&ReqId=0&DocType=COM&DocYear=2006&DocNum=0210

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