Electronically supplied services

What is an electronically supplied service?

An electronically supplied service is a service that is:

  • Delivered over the internet (or an electronic network which is reliant on the internet or similar network for its provision)
  • and
  • Is heavily dependent on information technology for its supply. The service is essentially automated involving minimal human intervention and, in the absence of information technology, does not have viability.

Examples include:

  • digitised products (such as software and changes to, or upgrades of software)
  • services which provide or support a business or personal presence on an electronic network (for example, a website)
  • services automatically generated from computer via the internet or an electronic network in response to specific data input by the customer
  • other automated services which are dependent on the internet or an electronic network for their provision.

The place of supply for electronically supplied services depends on who you are supplying.

Business to Business (B2B)

The normal B2B place of supply rules apply.

Business to Consumer (B2C)

The place of supply is where the customer:

  • is established
  • has their permanent address
  • usually resides.

New B2C threshold

An annual turnover threshold of €10,000 (exclusive of VAT) was introduced on 01 January 2019. This threshold was introduced to benefit micro-businesses which only occasionally supply TBE services to customers in other Member States. Up to this threshold, the place of supply of those services can be treated as the Member State where the supplier:

  • is established
  • has his or her permanent address
  • or
  • usually resides.

For the threshold to apply, the supplier must be established, have his permanent address or usually reside in only one Member State.

Further information is available in the Mini One-Stop-Shop (MOSS) section.