The new EU place-of-supply rules from a business perspective

From 1 January 2010, new rules apply for the purpose of determining whether or not services are subject to VAT in one of the EU Member States and, if they are, in which Member State the VAT liability arises; in other words, new rules will determine where services are deemed to be supplied for the purposes of the VAT system of the European Union. This article highlights the main issues that, based on a technical analysis and on practical examples, require further guidance and clarification at an EU level to avoid risks such as double taxation and non-taxation.