Dear Colleague, 

The Council of European Union adopts news rules for VAT which will as a general rule enter into force on 1 January 2010.  The main features of the new rules are as follows:

For Business-to-Business Services, taxation will be at the place where the customer is situated, and no longer at the place where the service provider is established, as is currently the case. 

For Business-to-Consumer Services, for most services, the place of taxation will continue to be that where the supplier is established, however, in certain circumstances, taxation of business-to-consumer services will be at the place of consumption in order to prevent distortions of competition between member states operating different VAT rates. 

For further information go to:

http://ec.europa.eu/taxation_customs/taxation/vat/key_documents/legislation_recently_adopted/index_en.htm

Kind regards,

Jane Montgomery