Evolution of the EU place-of-supply rules

The place-of-supply rules are not only an important, but probably also the most complex part of the European VAT system. At the end of 2003, the European Commission launched a proposal to amend the place-of-supply rules relating to services rendered to taxable persons. A year and a half later, the Commission incorporated rules relating to services rendered to non-taxable persons into its Proposal. In this article, the author describes the evolution of the place-of-supply rules up to and including the most recent proposal.