Regulations defining the place of supply of services related to properties valid from
1st January 2017.
In practice applying VAT rules in the EU causes many doubts regarding the definition of the status of services as related to properties.
Inadequate or insufficient classification of the same services in two different EU Member States could lead to double taxation or complete non-taxation of services.
Some proven practices and guidelines of the VAT Committee have been confirmed in Council Regulation EU in order to ensure consistency, efficiency and certainty of the EU VAT regulations connected to the taxation of services related to properties. EU Council Regulations number 1042/2017 from 7th October 2013 changing the Council Regulation (EU) no. 282/2011 with regard to the place of supply of services comes into force on 1st January 2017. This regulations shall be binding in its entirety and directly applicable in all Member States. These provisions should enable more efficient identification of services connected to properties, help eliminate many uncertainties and avoid conflicts with the Tax Authorities (or the tax administration).