From 01.01.2007 a special regime of VAT taxation was introduced on the electronic delivery of services by persons not established on the territory of the Community. In compliance with Chapter Eighteen of the Value Added Tax Act (effective from 01.01.2007) it is determined where and how e-services will be subject to VAT taxation. This concerns e-services offered by operators outside the European Union to persons not registered under VAT or to non-commercial organizations. These services are taxed in the state where the client lives. In order to avoid the necessity these operators from outside EU to register in each country where they provide services to clients, this special VAT registration allows them to register and submit declarations under VAT lient is living. in uropean Union to is determined where and how the electronic servi (VAT declarations) only in one member-state of the EU as they choose. This special registration is applicable only for supplies by persons and other non-commercial organizations not registered for the purposes of VAT. It does not apply for supplies to clients in the EU who are registered for the purposes of VAT, and who would deduct any taxes due using the “reverse charge” procedure.
You are obliged to register under the special taxation regime if you:
· Offer services, which are provided electronically; and
· Your clients are persons not registered under VAT, established or having a permanent address or usually staying at a EU member state ; and
· You are not established on the territory of the Community; and
· You are not obliged to register for the purposes of VAT on different grounds and you have no special registration for the purposes of VAT on the territory of another EU member state.
The registration and the submission of declarations are done via the VoeS information system.