CFE Opinion Statement FC 9/2018 – VAT definition of “electronically supplied services”

Released 05 December 2018

The Confédération Fiscale Européenne (CFE) has issued an opinion statement on whether “minimal human intervention” in “electronically supplied services” conforms with the VAT Directive.

CFE Opinion Statement FC 9/2018 on the notion of “minimal human intervention” in the definition of “electronically supplied services” discusses the implications of the European Commission VAT Committee Guidelines resulting from its 108th Meeting held on 27-28 March 2017 concerning the notion of “minimal human intervention” in “electronically supplied services” and CFE’s view as to whether they conform with the intended effect of Article 58 of the VAT Directive. In practice, businesses rely on an individual Member State’s determination of the notion of ‘electronically supplied services’, as well as on any guidance provided by the VAT Committee. Harmonisation of interpretation is key to ensuring that situations of double taxation or non-taxation do not arise. Insofar as the VAT Directive provides a special rule for the place of supply of ‘electronically supplied services’, which is defined by reference to particular characteristics, it would not be accurate to assume that all services delivered over the internet meet the definition. CFE believe that any guidance on the definition should be consistent and should draw on features of the services and/or the relevant aspects of ‘human intervention’, with due attention given to the particular characteristics of given services which may impact the classification.

View the opinion statement at Opinion Statement FC 9/2018 on the notion of “minimal human intervention”1 in the definition of “electronically supplied services” for the purposes of Article 58 of the VAT Directive.

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