1. www.pwc.com Sophie Claessens Barbara Berckmoes (PwC) 29 April 2015 B2C 2015 Working Group 2015 Go Live: Hot topics & Critical issues 2. PwC 2015 Agenda 1 EU 2015 VAT on Digital - How did we get here and why? 2 EU 2015 VAT on Digital Key Impacts 2015 Go Live Hot topics & Critical issues3 Slide 2 29 April 2015B2C 2015 Working Group 3. The interaction of: 2008: Initial VAT Package measures introduced 2003: VAT on electronic services Directive 2010: Change general PoS rules 2011: New PoS rules relating to events 2013: New PoS rules relating to hiring of means of transport In: Fiscalis SeminarsPublic consultation with businesses EU Commission WPTQ Meetings EU Council MeetingsVAT Committee discussions 2015: New PoS rules relating to B2C Telecom, Broadcasting and electronic services 4. Why was this change in VAT rules needed? Prevent rate-shopping Eliminate distortion of competition between EU and non EU suppliers Future-proof the VAT treatment of digital supplies Platform for future broader One-Stop- Shop arrangements Create level playing field Bring more fairness into taxation 5. Preparing for the change 5 EU Presidencies Cyprus Ireland Lithuania Greece Italy 92 pages of Explanatory Notes 14 Implementing provisions EU VAT portal National contacts points 6. Date of application of new EU VAT rules on digital supplies: New B2C 2015 VAT rules have come into effect! 7. PwC 2015 8. PwC 2015 Agenda 1 EU 2015 VAT on Digital - How did we get here and why? 2 EU 2015 VAT on Digital Key Impacts 2015 Go Live Hot topics & Critical issues3 Slide 9 29 April 2015B2C 2015 Working Group 9. PwC 2015 EU 2015 VAT on Digital Key Impacts 2015 Go Live Systems Invoicing Compliance and costs Legal Slide 10 29 April 2015B2C 2015 Working Group 10. PwC 2015 Agenda 1 EU 2015 VAT on Digital - How did we get here and why? 2 EU 2015 VAT on Digital Key Impacts 2015 Go Live Hot topics & Critical issues3 Slide 11 29 April 2015B2C 2015 Working Group 11. PwC 2015 2015 Go Live: Hot topics & Critical issues Legal Product inventory: Characterisation of digital supplies Is it an e-service or not (level of human intervention)? Online teaching, online gambling, live chat services Applicable VAT rates and exemptions Slide 12 29 April 2015B2C 2015 Working Group Contracts with platform providers and content partners Agent versus principal Impact on B2B contracts Collection and storage of customer data 12. PwC 2015 2015 Go Live: Hot topics & Critical issues Invoicing Slide 13 29 April 2015B2C 2015 Working Group Local B2C VAT invoicing requirements: wording, language, currency YES NO Croatia Cyprus Denmark* Greece* Hungary Lithuania Portugal Romania Slovenia Spain Austria Bulgaria* Estonia Latvia UK Belgium Czech Republic Finland France Germany Ireland Italy* Luxembourg Netherlands Malta* Poland* Slovakia Sweden 13. PwC 2015 2015 Go Live: Hot topics & Critical issues Front and Back Office Systems Slide 14 29 April 2015B2C 2015 Working Group Track & store customer location hierarchy & evidence Multiple VAT rates & exemption rules 14. PwC 2015 2015 Go Live: Hot topics & Critical issues Compliance & Costs Slide 15 29 April 2015B2C 2015 Working Group MOSS registrations and historic corrections Validation VAT numbers through VIES Internal audits & Tax audits 15. Thank you! The information in this presentation is solely for guidance on matters of general interest and is provided without any liability for decisions taken - or not taken - based on it. The application and impact of laws can vary widely depending on the specific circumstances and facts involved. This presentation is not a substitute for professional advice. Before taking any action, please ensure that you obtain advice based on your particular circumstances from your usual PwC client service team or your other tax advisers. The materials contained in this presentation were assembled on April 2015 and were based on the law applicable and information available at that moment in time. This presentation is proprietary and confidential information of PwC Tax Consultants BCVBA, Woluwedal 18, 1932 Sint-Stevens-Woluwe. All rights are reserved. This presentation is for your internal use only and you may not provide or make available a copy to any third person without our prior written consent. 2015 PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers" refers to one or more member firms of the global network of PricewaterhouseCoopers International Limited, all members of which are separate and independent legal entities. Sophie Claessens +32 (0) 473 91 05 67 sophie.claessens@be.pwc.com Barbara Berckmoes +352 49 4848 3083 barbara.x.berckmoes@lu.pwc.com