The ‘VAT Package’ will bring changes which will reshape the main rules applicable to the place of supply of services and a new electronic procedure for claiming VAT incurred in other Member States.

In preparation for the ‘Vat Package’ the Commission adopted a proposal recasting Council Regulation (EC) No 1777/2005 which includes a number of elements clarifying the application of the VAT Package, notably as regards the new place of supply rules for services. Once adopted by the Council by unanimity, this regulation is said to give clear legal certainty for businesses and Member States alike.