The European Commission’s Directorate General for Taxation and Customs Union has issued the summary report on the outcome of an on-line consultation concerning the place of supply of services to non-taxable persons that it launched on 3 February 2005.

A total of 71 external contributions were received in response to the consultation. Of that total, 47 came from national and European federations or associations, 22 came from business and two came from individuals.

While the majority of respondents supports the direction of the Commission’s work to date on this matter, which is to maintain the current general rule (taxation where the supplier is established) and to modify the place of taxation only for certain services, the consultation has identified a number of issues warranting further consideration, which the Commission will take into account during its ongoing and future planning.

The goal of the consultation was to describe the problem areas the Commission has identified in Article 9 of the Sixth VAT Directive (Directive 77/388/EEC of 17 May 1977) when dealing with services supplied to non-taxable persons (B2C supplies). The consultation document also provided an overview of possible modifications to the rules in order to overcome these problems. The Commission was seeking reactions and input on the proposed modification, in order to be in a better position to consider how best to progress with the possible review of these rules.

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