Telecommunications, broadcasting and electronic (TBE) services - new rules (2015)
Customer status — taxable or non-taxable status
The supplier must identify the taxable or non-taxable status of the customer. This will determine whether it is the supplier or the customer that is liable for the Value-Added Tax (VAT) on the supply. The supply of TBE services will be taxable in the Member State of the customer regardless of whether the customer is a business or non-business customer.
A business customer’s status is often verified through the provision of the VAT number by the customer. Where the customer has not provided a VAT number but you have other evidence of the customer’s business status, (for example proof that the customer is in the process of registering for VAT), you are not required to charge VAT. In this situation you may treat the customer as a business customer.
If the customer has not provided you with a VAT number and you are unsure of his status, you may treat the customer as a non-business customer and charge VAT on the supply. Where the customer subsequently provides you with a VAT number within a reasonable time of the supply and you are satisfied that the customer was in business at the time the supply was made, you should make an adjustment to reflect the customer’s taxable status.
Next: Who is making the supply to the final consumer?