On 1 July 2014, the European Commission issued a press release marking the beginning of the 6 month countdown to the implementation of the new rules on the place of supply for telecommunications, broadcasting and electronic services and the launch of the Mini One Stop Shop.

Under the new rules, which apply from 1 January 2015, VAT will be charged based on the rates of the EU Member State where the consumer is located. Businesses will be able to make use of the Mini One Stop Shop in their home country in order to pay VAT liabilities instead of having to declare and pay VAT to the Member State of each consumer.

Additional information can be found at the following links:

Taxation: Countdown to simpler and fairer VAT system

Questions & Answers: VAT changes from 2015

Telecommunications, broadcasting & electronic services - Current Rules and New Rules Comparison

Note - While the change in the place of supply rules for B2C supplies of telecommunications, broadcasting and electronic services is not a result of the OECD Base Erosion and Profit Shifting (BEPS) Project, such an approach is considered as part of the work on Action 1 (Addressing the Tax Challenges of the Digital Economy).