VAT on digital services in the EU

[fadetoblack]

I'm just trying to understand how this works.

The official line is: "From 1 January 2015 there are new place of supply rules for value added tax (<abbr title="Value Added Tax">VAT</abbr>) on the supply of digital services by businesses to consumers in the EU."

<abbr title="Value Added Tax">"VAT</abbr> on digital services will be paid in the consumer’s country, not the supplier’s country. It will be charged at the rate that applies in the consumer’s country".

As an affiliate, I am the supplier, so would that mean that I have to pay VAT in each of the consumers (sportsbooks) countries if they are in the EU?

[universal4]

As an affiliate, you are the marketer and the OPERATOR is the supplier of the service.

Rick
Universal4

[fadetoblack]

I assumed that they are treated as several things.

Like, I am supplying a service to the operator in marketing them.

Then, the operator is supplying a service to the gamblers with their products.

Is that wrong?

[ocreditor]

As an affiliate you are supplying only your services because you dont sell an product so I dont see any difference from regular services and/or digital services

[fadetoblack]

As an affiliate you are supplying only your services because you dont sell an product so I dont see any difference from regular services and/or digital services

So are you confirming what Rick is saying, or going against it? I'm not sure.

In my mind I am providing my marketing services to the gambling companies and this statement says that I have to pay VAT in their country:

"digital services will be paid in the consumer’s country, not the supplier’s country"

Could someone help explain it to me please?

[TheGooner]

The official line is: "From 1 January 2015 there are new place of supply rules for value added tax (<abbr title="Value Added Tax" style="border-width: 0px 0px 1px; border-bottom-style: dotted; border-bottom-color: rgb(0, 0, 0); cursor: help;">VAT</abbr>) on the supply of digital services by businesses to consumers in the EU."

<abbr title="Value Added Tax" style="border-width: 0px 0px 1px; border-bottom-style: dotted; border-bottom-color: rgb(0, 0, 0); cursor: help;">"VAT</abbr> on digital services will be paid in the consumer’s country, not the supplier’s country. It will be charged at the rate that applies in the consumer’s country".

Could someone help explain it to me please?

This appears to be something that applies to the programs providing services to players who are consumers.
This may not apply to your services - because you are providing a business-to-business service ... not to an end consumer.
(The main difference being that your customer is a VAT registered entity not an end consumer).

From the short excerpt you have provided it is impossible to tell the scope and nature of the tax changes - but the specification of "consumer" does suggest that it's a retail change and not a b-2-b change. Were case examples provided?

You will need to go to a qualified accountant to get an answer that you can rely on.

[Christiaan]

I am also a affiliate in the EU (Belgium) and asked my accountant company about this.

TheGooner is correct. As an affiliate you are a business/the supplier. The affiliate program (sportsbook provider) is also a business. So you are doing a business to business change. This rule only applies if you do a business to customer change.

So for an affiliate nothing changes. You create invoices from your company with VAT number to an other company with VAT number, so you create invoices with "“VAT shifted to recipient".

[fadetoblack]

This appears to be something that applies to the programs providing services to players who are consumers.
This may not apply to your services - because you are providing a business-to-business service ... not to an end consumer.
(The main difference being that your customer is a VAT registered entity not an end consumer).

From the short excerpt you have provided it is impossible to tell the scope and nature of the tax changes - but the specification of "consumer" does suggest that it's a retail change and not a b-2-b change. Were case examples provided?

You will need to go to a qualified accountant to get an answer that you can rely on.

The B2B thing makes sense. My accountant actually asked me. He was reading up around it and it's not 100% clear. I think from what you said, affiliates are safe though.